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HomeMy WebLinkAboutAgenda Item - 2026-01-20 - Number 08.1 - Ordinance 2964, Home Occupation Standards LU 25-0002 8.1 E s4_ COUNCIL REPORT v AP o OREGO� Subject: Ordinance 2964, Code Amendments to Update the Use-Specific Standards for Home Occupations and Create Regulations for Urban Agriculture (LU 25-0002) Meeting Date: January 20, 2026 Staff Member: Michael McNamee, Associate Planner Report Date:January 9, 2026 Department: Planning Action Required Advisory Board/Commission Recommendation ❑ Motion Z Approval ❑X Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: The Planning Commission approved the ❑ Council Direction findings, conclusions, and order for the proposed ❑ Consent Agenda amendments on December 8, 2025. Staff Recommendation: Conduct a public hearing on Ordinance 2964 and adopt the proposed code amendments. Recommended Language for Motion: Move to tentatively approve Ordinance 2964 and direct staff to return on February 3, 2026 with a final version of the ordinance, including findings and conclusions, for LU 25-0002. Project/Issue Relates To: Making home occupation standards clearer and more objective to improve understanding and enforcement. Addressing urban agriculture uses. Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable EXECUTIVE SUMMARY This project would replace existing subjective Home Occupation standards with clearer, measurable language that is easy for applicants, neighbors, and staff to understand and enforce. It would also create a new use category called Urban Agriculture, which would be permitted as a conditional use in the R-10 and R-15 zoning districts, so that businesses that fit within this category would no longer be regulated as home occupations. The Council and the Planning Commission (Commission) held several meetings to provide input on the proposal over the past year. The Commission held a public hearing on the proposed amendments on November 27, 2025, and approved the findings, conclusions, and order on December 8. Respect. Excellence. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND The City's use-specific standard for home occupations (LOC 50.03.004.1.b) in Subcriterion (1), below, consists of subjective language that makes it difficult for home occupation applicants, neighbors, the general public, and staff to understand and enforce: A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: (1) The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. Because this standard is undefined, it is open to interpretation, creating uncertainty for home business operators and differing expectations among neighbors about neighborhood impacts. Creating more objective standards would establish measurable thresholds for impacts in residential areas, simplifying enforcement and ensuring more consistent outcomes. The purpose of the proposed amendments is to replace Subcriterion (1), above, with new code language that distills the concepts of "residential character" and "peaceful enjoyment of the neighborhood" into measurable, objective standards that provide a clear path for approval and ongoing compliance for home occupations. Staff discussed this issue with the City Council at their meeting on June 18, 2024, as part of a general update on code enforcement. The Council expressed support and directed staff to develop amendments that would replace Subcriterion (1) with more clear and objective code language. Staff researched home occupation regulations in peer jurisdictions to help provide background and context for potential new regulations and conducted the following public engagement to inform the proposed amendments: • Planning Commission work sessions on January 27, 2025, April 14 and June 9; • City Council study sessions on April 1 and October 7; • Presentations to the Neighborhood Chairs Committee on January 18 and May 17; and • A survey distributed to home occupation business licensees that was open for three weeks and received 157 responses (a roughly 28% response rate). Based on feedback from this engagement and the findings of the research, staff identified an additional need to address accessory agricultural uses that are currently operating in a residential zone but would not meet the proposed new standards for home occupations. To address this issue, staff is also proposing to create a new use called Urban Agriculture, which would be allowed as a conditional use in the R-10 and R-15 zones. At the most recent study session on October 7, the Council provided the following direction on several of the proposed code amendment concepts: • Remove the previously-proposed expansion of the farm stand use into residential zones. The Council expressed concern that farm stands may not be compatible with residential neighborhoods, particularly since the use could include more intense seasonal operations such as Christmas tree lots, even if they are limited to 800 square feet in size. Respect. Trust 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 3 • Tighten restrictions for outdoor activity under Option 1, which would permit outdoor activity on a limited basis. The Council expressed a preference to reduce the number of clients or customers allowed to participate in outdoor activities (proposed to be eight in the 9/8/25 draft code amendments), to limit the potential negative impacts like noise and traffic. Council also directed staff to prohibit outdoor activities on Sundays. • Further restrict the use-specific standards for urban agriculture. The Council expressed concerns that permitting a high volume of sales, service days and customers for urban agriculture uses could adversely impact neighbors. To address these concerns, the Council asked staff to look into whether reducing the number of service days and customers would be feasible, particularly in light of existing businesses that would need to comply with the new regulations. Based on initial feedback from an existing urban agriculture business, staff reduced the allowances to 45 calendar days and a maximum of 10 clients at one time. The Council also directed staff to only permit urban agriculture as a conditional use to ensure that potential negative impacts of the use are mitigated. Existing urban agriculture businesses would not be required to obtain a conditional use permit, but expansion of an existing business or a new urban agriculture use would. This feedback and direction are reflected in the attached draft code amendments (Attachment 2 to Ordinance 2964, Exhibit A-1). A Planning Commission hearing was held on November 24, 2025, which is discussed in more detail below. DISCUSSION The proposed code amendments are attached as Attachment 2 to Ordinance 2964 (Exhibit A- 1). The proposed amendments would make the following changes to the use-specific standards for home occupations: 1. Delete Subcriterion (1), which states that a home occupation can't "alter the residential character" of the surrounding neighborhood or "infringe upon the rights" of neighboring residents to the "peaceful enjoyment of the neighborhood." This standard is unclear and is proposed to be replaced with more objective requirements. 2. Classify home occupations into three types (A, B, and C) in order to apply additional regulations to those types of home occupations that may have a larger potential impact on neighboring properties. Type A businesses would be those that do not have customers come to the site or are simply used as a business address. Type B businesses would be those that involve customers coming to the site. Type C businesses would consist of short-term rentals, which are currently subject to home occupations regulations with their own set of use-specific standards. 3. Add a reference to the City's existing public nuisance rules (LOC 34.08 and 34.10) to make it clear that they apply to home occupations. 4. For Type B businesses, add a requirement that limits outdoor activity by either applying additional restrictions or banning it outright. The proposed code amendments offer two different approaches: Respect. Excellence. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 4 a. Option 1: Permits outdoor classes or demonstrations, like art or yoga classes, with a limit of six clients or customers permitted outdoors at once, a limit on the permitted hours of operation to between 9:00 am and 7:00 pm, and a ban on outdoor activity with clients on Sundays or public holidays. b. Option 2: Bans all outdoor activity with clients, consistent with existing internal policy. 5. Clarify that child care homes and adult foster homes are exempt from home occupation regulations under state law, improving public understanding of the rules. The proposed amendments would also create a new land use category and definition called Urban Agriculture, allowing crops to be grown for sale on certain residential properties in the R-10 and R-15 zones. Based on testimony at the Planning Commission hearing, staff is recommending a clarification to the definition recommended for approval by the Commission (see Staff Recommended Changes, below). This clarification ensures that low impact agriculture-related businesses, such as a home-based florist, would not be unintentionally swept up in the definition of Urban Agriculture. The amendments would also update the conditional use standards (LOC 50.07.005.1.c) to allow existing Urban Agriculture businesses to be recognized as legal conditional uses rather than nonconforming uses (Attachment 2 to Ordinance 2964 [Exhibit A-1], pg. 7). The proposed text includes the following specific use standards for Urban Agriculture (proposed to be located in LOC 50.03.004.1.b.vii): 1. The property must have a minimum lot size of one acre. 2. The urban agriculture use shall have a maximum area of 20,000 square feet or 35 percent of the area of the lot, whichever is less. The maximum area includes the area under cultivation, the area covered by any structures associated with food and/or beverage production, the compost pile, or any other area associated with the activities of the agriculture use. 3. On-site sales and serving are allowed, subject to the following additional standards: a. Sales and serving are allowed only between 7:00 am and 8:00 pm. b. Sales and serving are allowed up to 45 days in each calendar year. c. A maximum number of clients or customers permitted on the property at the same time will be determined as part of the conditional use approval.' 4. Use of motorized equipment is only allowed between 7:00 am and 8:00 pm. Planning Commission Modifications ' Standard 3(c)was originally proposed as follows: "A maximum of 10 clients, including persons accompanying clients,are permitted on the property at the same time", but was modified by the Commission at the November 24,2025 public hearing;see Use-Specific Standards for Home Occupations—Planning Commission Modifications, below. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 5 The Commission held a public hearing on the proposed amendments on November 24, 2025, and recommended approval of the proposed amendments, with the following changes: 1. Use-Specific Standards for Home Occupations—Commission Modifications a. Removed proposed requirement prohibiting hazardous substances beyond consumer quantities. Hazardous substances are currently regulated by both the state and the Fire Department. The Commission did not support adding this standard to the home occupation regulations because hazardous substances are sufficiently regulated at the state level and by the Fire Department and there was no clear benefit to adding additional regulations under the home occupation standards. The Commission was concerned that redundant regulations could be detrimental to businesses. The Commission's recommended draft Community Development Code amendments were modified to remove this language from the use-specific standards for home occupations. b. Removed a proposed requirement that only one vehicle with visible company or commercial markings is allowed to be parked within 300 feet of the property where the home occupation is located. The Commission did not support the inclusion of this standard in the proposed amendments because it would be too restrictive for business owners, particularly when compared with existing code, which has no stated limit. The Commission's recommended draft Community Development Code amendments were modified to remove this language from the use-specific standards for home occupations. c. Removed a proposed requirement for Type B businesses—which involve customers coming to the site - that only eight clients or customers are permitted on premises at one time. The Commission did not support the inclusion of this standard in the proposed amendments because it would be too restrictive for business owners compared with existing code, which has no stated limit. The Commission's recommended draft Community Development Code amendments were modified to remove this language from the use-specific standards for home occupations. 2. Outdoor Activity—Commission Modifications a. The Commission recommends Outdoor Activity Option 1, which would allow home- occupation business owners flexibility for limited outdoor activity. Staff proposed two options to the Commission, one of which would limit outdoor activity for Type B businesses by applying additional restrictions (Option 1), and the other of which would institute an outright ban on outdoor activity for Type B businesses, consistent with existing policy (Option 2). When the Commission considered the extent to which outdoor activity should be limited for Type B home occupation businesses, they found that it is reasonable to permit some outdoor activity involving clients or customers and that other standards, such as the Nuisance Code, sufficiently address potential impacts to surrounding properties. 3. Urban Agriculture—Commission Modifications Respect. Excellence. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 6 a. The Commission recommends that the maximum number of clients allowed at a time for an Urban Agriculture business should be determined as part of the conditional use approval process. The Commission received written testimony at the hearing expressing concerns that the proposed regulations for uses that would be newly- classified as Urban Agriculture in LOC 50.03.004.1.b.vii would be overly burdensome on such businesses. Specifically, the commenter argued that the proposed limitation of 10 clients at a time for an Urban Agriculture use would be detrimental to his business. The Commission concurred and found that instead of placing a specific limit on the number of clients that would apply to all Urban Agriculture uses, the maximum number of clients allowed should be determined as part of the conditional use approval process. Conditional uses are approved through a discretionary process that would allow the City to consider whether the impact of client visitation can be mitigated or if there are characteristics of the site that might lessen concern of impacts on neighbors. This allows flexibility in the number of clients that could be allowed considering the characteristics of the site and other mitigating factors. The conditional use process also includes opportunity for public comment and appeal. Staff Recommended Changes At the Planning Commission hearing, oral testimony was received expressing concerns that the definition of the proposed Urban Agriculture use was too broad and could capture any business that involves growing plants—even small flower gardens. If a business were considered an Urban Agriculture use, it would require a conditional use permit and would need to meet minimum lot size requirements, potentially disallowing existing low-impact businesses that were not intended to be classified as Urban Agriculture use. To address this concern, staff is recommending a change (shown in bold text, below) to the definition of Urban Agriculture (LOC 50.10.003) so that agriculture-related businesses, such as a home-based florist, that would otherwise meet the more limited specific use standards for a Home Occupation would not be considered Urban Agriculture: LOC 50.10.003- Definitions. /// 2. Definition of Terms. The following terms shall mean, except as may be otherwise defined for a specific section: /// Urban Agriculture A site where food and/or plants are grown to be sold, including crops that will be used to produce alcoholic or other beverages, that does not qualify as a Home Occupation per LOC 50.03.004.b.ii. An area for serving or tasting can be included. The food and/or plants may be sold directly to consumers, restaurants, stores, or other buyers, or at markets. Heavy manufacturing is not allowed as part of this use. Respect. Excellence. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 7 FISCAL IMPACT There is no fiscal impact for making these changes to City Code. RECOMMENDATION Staff recommends that the City Council tentatively approve LU 25-0002 as recommended by the Commission, and direct staff to return on February 3, 2026, with a final version of Ordinance 2964, including findings and conclusions. EXHIBITS A. Draft Ordinance A-1 Ordinance 2964, draft January 9, 2026 (supersedes November 14, 2025) Attachment 1: Reserved for City Council Findings (not included) Attachment 2: Community Development Code Amendments, draft December 3, 2025 (supersedes October 17, 2025 version) B. Findings, Conclusions and Order B-1 PC Findings, Conclusions, and Order, December 8, 2025 C. Minutes C-1 PC Minutes— Public Hearing November 24, 2025 (draft) D. Staff Reports D-1 Staff Memo January 16, 2025, PC Work Session January 27, 2025 w-Attach D-2 Staff Memo April 7, 2025, PC Work Session April 14, 2025 w-Attach D-3 Staff Memo May 30, 2025, PC Work Session June 9, 2025 w-Attach D-4 Staff Report, November 14, 2025, PC Public Hearing November 24, 2025 E. Graphics/Plans [No current exhibits] F. Written Materials [No current exhibits] G. Public Testimony G-1 Email from Robert Ervin, November 24, 2025 Staff reports and public meeting materials that were prepared for these code amendments can be found by visiting the project webpage for LU 25-0002. Use the link below to visit the City's "Project" page. https://www.ci.oswego.or.us/all-projects (Under "Search" enter LU 25-0002, then press "Enter") Respect. Excel'enEe. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY DRAFT: 01/09/2026 EXHIBIT A-1 ORDINANCE 2964 AN ORDINANCE OF THE LAKE OSWEGO CITY COUNCIL AMENDING: LOC 50.03.002 USE TABLE; 50.03.004 ACCESSORY STRUCTURES AND USES; AND 50.07.005 CONDITIONAL USE PERMITS; AND ADOPTING FINDINGS (LU 25-0002). WHEREAS, notice of the public hearing for consideration of this Ordinance was duly given in the manner required by law; and WHEREAS, on November 24, 2025, the Planning Commission conducted a public hearing to consider a City-initiated proposal to amend the Community Development Code to establish clearer and more objective standards for home occupations, at which the staff report,testimony, and evidence were received and considered; and WHEREAS, the Planning Commission has recommended that LU 25-0002, with Planning Commission recommended Community Development Code Amendments dated December 3, 2025, be approved by the City Council; and WHEREAS, a public hearing on LU 25-0002 was held before the City Council of the City of Lake Oswego on January 20, 2026, at which the staff report, testimony, and evidence were received and considered; and WHEREAS, the Council finds that the Community Development Code should be amended to replace existing ambiguous language regulating home occupations with clearer and more objective standards; and WHEREAS, the Council finds that the Community Development Code should be amended to create a new use category to be called Urban Agriculture, and that use-specific standards should be designated for that use; The City of Lake Oswego ordains as follows: Section 1. The City Council hereby adopts the Findings and Conclusions (LU 25-0002), attached as Attachment 1. Section 2. The Lake Oswego Code, Chapter 50 (Community Development Code) is hereby amended by deleting the text shown by strikethrough type and adding new text shown underlined type, in Attachment 2. (Sections or subsections within LOC Chapter 50 that are omitted in Attachment 2, and not marked for deletion or addition, are neither amended nor deleted by this Ordinance.) Section 3. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. Ordinance 2964 EXHIBIT A-1/PAGE 1 OF 2 DRAFT: 01/09/2026 EXHIBIT A-1 Section 4. Effective Date. As provided in Section 35C of Chapter VII of the Lake Oswego Charter, this ordinance shall take effect on the thirtieth day following enactment. Enacted at the meeting of the City Council of the City of Lake Oswego held on the 20th day of January, 2026. AYES: NOES: ABSTAIN: ABSENT: Joseph M. Buck, Mayor Dated: ATTEST: Laural Hawkins, City Recorder APPROVED AS TO FORM: Erica Tatoian, Special Counsel Ordinance 2964 EXHIBIT A-1/PAGE 2 OF 2 ATTACHMENT 2 Draft 12/03/2025 Note: For adoption as Attachment 2 to Ordinance 2964,the staff comments and unamended provisions of the Code Sections of the Code Amendments will be removed. LOC 50.03.002 Use Table /// 2. Residential Use Table. TABLE 50.03.002-1:RESIDENTIAL DISTRICTS USE TABLE P=Permitted Use I Blank=Not Permitted I C=Conditional Use I A=Accessory Use [x]Table notes located at the end of the table Use Use Type Residential Use-Specific Category Standards R-15 R-10 R-7.5 R-6 R-5 R-DD R-W R-3[3] R-2 R-0[3][4] ACCESSORY USES Accessory Community A A A A A A A A A A §50.03.003.6.j Uses garden Urban C C §50.03.004.1.b.vii agriculture Home A A A A A A A A A A §50.03.004.1.b.ii occupation Short-term A A A A A A A A A A §50.03.004.1.b.ii rental lodging Large animals A A §50.03.004.1.b.iii kept for owner's personal use Small animals A A A A A A A A A A kept for owner's personal use[2] Accessory A A A A A A A A A A §50.03.004.1.b.vi dwelling unit Commentary:"Urban Agriculture" would be permitted as a conditional use in the lowest density residential districts, R-10 and R-15.This reflects Council direction to allow the use with a Conditional Use Permit. Urban Agriculture would only be permitted on lots that are greater than one acre in size. R-10 and R-15 zones have a greater number of lots that can accommodate this, and larger lots in general can provide a greater buffer between existing homes and a proposed Urban Agriculture use. /// LU 25-0002 ATTACHMENT 2/PAGE 1 OF 7 Draft 12/03/2025 LOC 50.03.004 Accessory Structures and Uses 1. Accessory Uses a. General Standards /// b. Standards for Specific Uses /// ii. Home Occupation.There are three types of home occupations: Type A.A home occupation where a portion of the home is used to operate a business but no customers come to the site. A Type A home occupation may also involve a home that is used as a business address, but is not used for business operations. Type B. A home occupation where a portion of the home is used to operate a business and customers may come to the site. Type C. A short-term rental, as defined in LOC 50.10.003.2. Commentary: Home occupations are proposed to be categorized into three different types.This will make it easier for the City to apply additional rules to home occupations that have a greater impact on the surrounding neighborhood. It also makes it clear that certain rules do not apply to short term rentals—and vice versa. A Type A,Type B, or Type C home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously met Commentary:This standard is proposed to be removed because it uses vague, nebulous language that is difficult to enforce and for the public and home occupation owners to understand. It would be replaced by the new standards, which are intended to be clearer and more objective, provided in this section below. (1) A current and valid business license is maintained. (2) No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping, yard maintenance, or other domestic services for the dwelling where the business occurs. (3)No outdoor storage of goods or materials. Commentary: Removes allowance for outdoor storage of vegetation because outdoor business activities, such as a seasonal Christmas tree lot, can have significant impacts to residential areas due to traffic, parking and noise. (1) Any substance listed or described as hazardous in ORS Chapter'153 (Hazardous Substances) is not permitted at the property where the business occurs, except that consumer quantities arc allowed. Consumer quantities of hazardous substances arc packaged and distributed in a form intended or suitable for sale through retail sales outlets for consumption by individuals for purposes of personal care and household use. LU 25-0002 ATTACHMENT 2/PAGE 2 OF 7 Draft 12/03/2025 Commentary:This standard would make it clear that hazardous substance limitations apply to home occupation uses, creating a path for code enforcement to use when they encounter hazardous materials. While hazardous substances are regulated at the state level, adding a regulation to the City's home occupation standards would make it possible to prohibit a home occupation use from storing and using an amount of a hazardous substance that is greater than the typical household limit.The Planning Commission does not support the inclusion of this standard in the proposed amendments for the reason that they feel hazardous substances are sufficiently regulated at the state level and by the Fire Department. Additionally, it is difficult to anticipate how this standard will impact home occupation businesses and whether there will be a positive net impact on the surrounding neighborhood strong enough to outweigh potential adverse impacts on businesses. In order to address this concern, the Commission's recommended draft Community Development Code amendments to the Council are modified to remove this language from the use-specific standards for home occupations. (5)The City's public nuisance rules (LOC Art. 34.08, LOC Art. 34.10) apply to home occupations, and any complaints of a public nuisance related to a home occupation shall be treated the same as any other public nuisance. Commentary:This standard is proposed to be added to clarify that the City's existing public nuisance rules apply to home occupations.This was seen as a preferable option by the Planning Commission and staff when compared with creating new nuisance rules specifically for home occupations. By adding language to the home occupation standards, it is made clear to home occupation operators that they must comply with nuisance rules. (6) No more than 25%of the aggregate floor area on the lot is devoted to nonresidential use, except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met. {7) A maximum of one vehicle with visible, cxtcrior company or commercial markings is permitted to park off site,within 300 feet of the property where the business occurs. Commentary:This regulation would make it so that any number of commercial vehicles are permitted as long as they can be legally parked on the property where the home occupation is located. Otherwise, each home occupation business would be permitted to have one vehicle parked off the property, within 300 feet.An enforcement distance of 300 feet is proposed in the code because it is a commonly used distance for noticing, and therefore generally accepted as a way to define the area of influence for a property's activity.The Planning Commission does not support the inclusion of this standard in the proposed amendments for the reason that it would be too restrictive for business owners, particularly when compared with existing code. LU 25-0002 ATTACHMENT 2/PAGE 3 OF 7 Draft 12/03/2025 In order to address this concern, the Commission's recommended draft Community Development Code amendments are modified to remove this language from the use- specific standards for home occupations. (8) Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited. (9) A Type B home occupation shall meet the following additional standards: (a)The number of persons visiting the home at the same time as clients or customers, shall not exceed eight. Commentary:This provision would be added to address the impacts that are associated with client visitation. Code enforcement staff noted that a limitation based on a period of time, such as a limitation of 8 clients per day or 2 clients per hour,would be difficult to enforce, and that a limitation based on total number of clients at one time would be more enforceable.The Commission does not support the inclusion of this standard in the proposed amendments for the reason that it would be too restrictive for business owners compared with existing code. In order to address this concern, the Commission's recommended draft Community Development Code amendments to the Council are modified to remove this language from the use-specific standards for home occupations. Outdoor Activity—Option 1(b) Outdoor activities involving clients or customers are not permitted, except limited outdoor activity as provided below: (i) Instructional or demonstration uses directly led by the home occupation operator such as art, gardening, or yoga classes, limited to five clients or participants at one time are permitted. No more than two outdoor sessions are permitted per day, and no more than six outdoor sessions are permitted per week. Outdoor business activities may only occur between 9:00 am and 7:00 pm. No outdoor business activity is permitted on Sundays or public holidays. (ii) Use of outdoor space for events, rentals, parties, weddings, performances, markets, or other commercial gatherings is prohibited. Commentary:Option 1 for this subsection (b) would disallow outdoor activity associated with a home occupation business, with some exceptions.The language is written specifically to only apply to outdoor activity that includes clients, which would allow business operators to work alone outside. Lower impact client activities, like teaching a workout or gardening class, are proposed to be permitted with some limitations on the number of clients permitted at once,the number of classes allowed over a period of time, and the time of day/days of the week. A limitation on Sunday operations was added at the direction of the Council. Higher impact activities, in particular rental of outdoor areas, are specifically called out as being prohibited to make it clear that this LU 25-0002 ATTACHMENT 2/PAGE 4 OF 7 Draft 12/03/2025 allowance does not apply to them.This option aligns with feedback from the Planning Commission and Neighborhood Chairs Committee to allow flexibility for lower impact outdoor activities associated with a home occupation. This option was selected by the Planning Commission because they found it was appropriate to permit small instructional classes that are conducted outside and this option would provide some additional flexibility to home occupation business owners compared to the City's existing internal policy. Outdoor Activity—Option 2 {b) Outdoor activities associated with the business and involving clients or customers arc not permitted. Commentary:Option 2 for subsection (b)would disallow outdoor activity associated with a home occupation business entirely.This aligns with the direction provided by the City Council at the work session conducted on April 1, 2025.Again, the prohibition would only apply to outdoor activity that involves clients, allowing business owners to work outside by themselves. This option was not selected by the Planning Commission because they felt it is reasonable to permit some outdoor activity involving clients or customers. (10)Type C Home Occupations, short-term rentals, shall meet the following additional standards: (a)A person who owns a lot containing a short-term rental (primary or secondary dwelling unit) must maintain their primary residence on the lot.The owner is not required to be on the lot when the dwelling is rented. (b) No other commercial uses are allowed in conjunction with or accessory to a short-term rental.The short-term rental shall not be marketed or used for group events such as weddings, classes, or similar events, for example. Commentary:These are existing standards that apply only to short term rentals.Short term rentals would be newly classified as "Type C" home occupations to match the new classification scheme.A slight edit is proposed to standard (10)(b)to make it clear that this is not just a limitation on marketing but also on the use of the property. The following uses are exempt from the regulations of this section, except that a business license is still required: (a) Registered or certified family child care homes that also meet the State's requirements of ORS 329A; and (b) Licensed adult foster homes that also meet the State's requirements of OAR 309-040-0330. Commentary:State law limits the ability of local jurisdictions to apply additional use regulations to child care homes and licensed adult foster homes in residential zones. LU 25-0002 ATTACHMENT 2/PAGE 5 OF 7 Draft 12/03/2025 This regulation makes it clear to the public and home occupation operators that child care homes and licensed adult foster homes are exempt from the use-specific regulations for home occupations. /// /// vii. Urban Agriculture. Urban agriculture is permitted with a Conditional Use Permit. (1) The property must have a minimum lot size of one acre. (2) The urban agriculture use shall have a maximum area of 20,000 square feet or 35 percent of the area of the lot,whichever is less.The maximum area includes the area under cultivation,the area covered by any structures associated with food and/or beverage production, the compost pile, or any other area associated with the activities of the agriculture use. (3) On-site sales and serving are allowed, subject to the following additional standards: (a) Sales and serving are allowed only between 7:00 am and 8:00 pm. (b) Sales and serving are allowed up to 45 days in each calendar year. (c) A maximum of 10 clients, including persons accompanying clients, are permitted on the property at the same time.A maximum number of clients or customers permitted on the property at the same time will be determined as part of the conditional use approval. (4) Use of motorized equipment is only allowed between 7:00 am and 8:00 pm. Commentary: "Urban agriculture"would be a new accessory use that would be allowed as a conditional use in the R-10 and R-15 zones.The above standards would be new use-specific regulations that would apply to Urban Agriculture.They were drafted based on the City of Portland's regulation for a similar use, Market Gardens.A minimum lot size of one acre has been added to assure adequate area to accommodate the use with fewer impacts to surrounding properties.The maximum area allowed for agricultural use would be 20,000 square feet (which is based on Portland's maximum area for Market Gardens in the R-10 zone) or 35 percent of the area of the lot.This is intended to limit the lot coverage of the use on a property and minimize the impact on neighborhood residential character. Food sales and serving/tastings are permitted. Hours of operation of food sales and serving, along with hours of operation for the use of motorized equipment, are limited to the same hours that a Community Garden can operate, 7 am—8 pm. Food sales and serving are limited to 45 days per calendar year, or slightly more than once per week,to preserve residential character.The proposed language regarding limits on the number of clients who can visit at one time has been changed to reflect the Planning Commission's response to written and oral testimony received at the Planning Commission public hearing. Instead of placing a specific limit that would apply to all businesses regardless of site-specific circumstances,the Commission finds that the proposed amendments should be changed to say that the maximum number of clients will be determined as part of the conditional use approval process, which will allow the City to take into account whether the LU 25-0002 ATTACHMENT 2/PAGE 6 OF 7 Draft 12/03/2025 impact of client visitation can be mitigated or if there are characteristics of the site that might lessen concern of impacts on neighbors. /// LOC 50.07.005 Conditional Use Permits. 1. Intent and Purpose; Effect of Use Under Prior Code Which is Conditional Under Current Code. a. A conditional use is an activity which is permitted in a zone but which, because of some characteristics which are not entirely compatible with other uses allowed in the zone, cannot be permitted outright.A public hearing and review of the proposed conditional use by the hearing body and the imposition of conditions, if necessary, is intended to ensure that the use proposed will be as compatible as practical with surrounding uses, and is in conformance with the purposes and requirements of the district, if any, and with other applicable criteria and standards of the City. b. An alteration in a use which was classified by the prior zoning code as a permitted use that is by this Code classified as a conditional use shall conform to the requirements of this Code. c. A use that existed before December 16, 1982, which is permitted only upon receiving a conditional use permit under the terms of this Code, and an urban agriculture use that existed before[effective date of ordinance], is not a nonconforming use, but is without further action to be considered a conforming use. Commentary:There is one urban agricultural use (winery) in the City that staff identified during this project.The use has been operating in the City for some time. Because this type of use does not fit well under the home occupation use, it is proposed as a new accessory use subject to a conditional use permit. It is not the intent of this code amendment to require the existing business, which has been operating with a city business license for some time without any complaints or incidents, to now obtain a conditional use; however, as noted in subsection 1.b, above, any future alterations to the winery(urban agricultural use) will be required to conform to the requirements of this Code. /// LOC 50.10.003 Definitions 2. Definition of Terms. /// Urban Agriculture A site where food and/or plants are grown to be sold, including crops that will be used to produce alcoholic or other beverages,that does not qualify as a Home Occupation per LOC 50.03.004.b.ii.An area for serving or tasting can be included.The food and/or plants may be sold directly to consumers, restaurants, stores, or other buyers, or at markets. Heavy manufacturing is not allowed as part of this use. LU 25-0002 ATTACHMENT 2/PAGE 7 OF 7 Draft 12/03/2025 Commentary:A new definition would be added for a land use called "Urban Agriculture."This definition is partly based on the City of Portland's definition for a use called Market Gardens. The intention is to allow for growing produce on a property, which can then be sold as raw produce or as a food product derived from that produce, on site or to off-site customers. An area for serving food or providing tastings is specifically allowed.This definition was modified to allow for the cultivation of plants based on direction from the Planning Commission. /// LU 25-0002 ATTACHMENT 2/PAGE 8 OF 7 EXHIBIT B-1 APPROVED: 12/08/2025 1 BEFORE THE PLANNING COMMISSION 2 OF THE 3 CITY OF LAKE OSWEGO 4 5 AMENDMENTS TO THE COMMUNITY ) LU 25-0002 6 DEVELOPMENT CODE, LOC 50.03.002 USE TABLE, ) (CITY OF LAKE OSWEGO) 7 LOC 50.03.004 ACCESSORY STRUCTURES AND ) FINDINGS, CONCLUSION & ORDER 8 USES, LOC.07.005 CONDITIONAL USE PERMITS, ) 9 AND LOC 50.10.003 DEFINITIONS; AND ADOPTING ) 10 ORDINANCE 2964. 11 12 NATURE OF APPLICATION 13 14 The City of Lake Oswego is requesting approval of legislative amendments (Ordinance 2964) to 15 the Lake Oswego Community Development Code (CDC) (Lake Oswego Code, Chapter 50) to 16 replace existing subjective home occupation standards with more objective, measurable 17 standards that can be easily understood by home occupation business applicants and neighbors 18 and to create a new land use category to be called Urban Agriculture. Proposed amendments 19 are to: LOC 50.03.002, Use Table, LOC 50.03.004, Accessory Structures and Uses, LOC 20 50.07.005, Conditional Use Permits, and LOC 50.10.003, Definitions. 21 22 HEARINGS 23 24 The Planning Commission (Commission) held a public hearing and considered this application at 25 its meeting on November 24, 2025. The following written testimony was presented to the 26 Commission at its hearing and added to the record: 27 G-1 R. Ervin, dated 11/24/2025 28 29 Oral Testimony: 30 • Sam Hull 31 • Diane Cassidy 32 33 CRITERIA AND STANDARDS 34 35 A. City of Lake Oswego Comprehensive Plan 36 37 Land Use Planning Policy C-4 38 Complete Neighborhoods & Housing Policy C-6 39 Economic Vitality Policies A-3 and A-10 40 Community Health & Public Safety: 41 Public Safety, Police and Fire Protection Policy 4 42 Sound Quality Policy 1 43 Access to Local Food Policy 3 LU 25-0002 Exhibit B-1/Page 1 of 5 EXHIBIT B-1 APPROVED: 12/08/2025 1 Open Spaces & Natural Areas, Air Resources Quality (Goal 6) Policy 5 2 3 B. Neighborhood Plans 4 5 Glenmorrie 6 Housing Policies 6 and 7 7 8 Lake Forest 9 Air, Water, and Land Resources: Sound Quality Policy 1 to Economic Development and Commercial Lands Policy 5 11 Housing/Residential Land Use Policies 5 and 6 12 13 Waluga 14 Economic Development Policies 10 and 11 15 16 C. City of Lake Oswego Community Development Code 17 18 LOC 50.07.003.16.a Legislative Decisions Defined 19 LOC 50.07.003.16.c Required Notice to DLCD 20 LOC 50.07.003.16.d Planning Commission Recommendation Required 21 LOC 50.07.003.16.e City Council Review and Decision 22 23 CONCLUSION 24 25 The Planning Commission concludes that the recommended Code Amendments in Attachment 26 2 (dated 12/03/2025) of proposed Ordinance 2964 are in compliance with all applicable criteria. 27 28 FINDINGS AND REASONS 29 30 The Planning Commission incorporates: Exhibit D-1 (Staff Report dated, 11/14/2025, with all 31 exhibits attached thereto), supplemented by the further findings and conclusions set forth 32 herein. In the event of any inconsistency between the supplementary matter herein and the 33 staff reports, the matter herein controls. To the extent they are consistent with the approval 34 granted herein, the Commission adopts by reference its oral deliberations on this matter. 35 36 Following are the supplementary findings and conclusions of this Commission: 37 38 1. Hazardous substances. The Commission finds that the proposed hazardous substance 39 limitation in LOC 50.03.004.1.b.ii(4) on page 3 of the October 17, 2025 Draft Code 40 Amendments could have unintended consequences that would overly limit home 41 occupation activity. Commissioners noted that some home businesses, such as a 42 photographer, may purchase hazardous substances in wholesale quantities that exceed 43 typical consumer quantities, but don't necessarily pose a risk to surrounding properties. LU 25-0002 Exhibit B-1/Page 2 of 5 EXHIBIT B-1 APPROVED: 12/08/2025 1 The Commission does not recommend the inclusion of a hazardous substance limitation 2 in the proposed amendments because it finds that hazardous substances are sufficiently 3 regulated at the state level and by the Fire Department and that creating an additional 4 local restriction would be redundant and overly restrictive to home businesses. 5 6 The Commission's recommended draft Community Development Code amendments 7 (dated December 3, 2025) of proposed Ordinance 2964 do not include a hazardous 8 substance restriction in subsection (4) of the use-specific standards for home 9 occupations. 10 11 2. Off-site parking. The Commission received oral testimony expressing concerns about 12 the proposed limitations on off-site parking for commercial vehicles in LOC 13 50.03.004.1.b.ii(7) [see page 3 of the October 17, 2025 Draft Code Amendments] and 14 the potential for inequitable enforcement given that not all commercial vehicles have 15 markings, or the markings could be easily removed, such as a magnetic sign. 16 17 The Commission notes that limitations on off-site parking for commercial vehicles don't 18 currently exist in the Home Occupation standards and finds that adding such limitations 19 would be unnecessarily restrictive to home occupation activity and may not be evenly 20 enforced. For these reasons, the Commission does not recommend inclusion of this 21 standard in the proposed amendments. 22 23 The Commission's recommended draft Community Development Code amendments 24 (dated December 3, 2025) of proposed Ordinance 2964 do not include off-site parking 25 limitations in subsection (7) of the use-specific standards for home occupations. 26 27 3. Visitors for Type B home occupations. The Commission finds that the proposed 28 limitation on the number of persons visiting the home occupation business in LOC 29 50.03.004.1.b.ii(9)(a) on pages 3-4 of the October 17, 2025 Draft Code Amendments 30 would be a new regulation that unnecessarily restricts home occupation activity. 31 32 The Commission finds that potential impacts from multiple clients visiting the home can 33 be sufficiently addressed by other regulations, such as noise restrictions in the Nuisance 34 Code and limiting outdoor activity. For these reasons, the Commission does not 35 recommend the inclusion of this standard in the proposed amendments. 36 37 The Commission's recommended draft Community Development Code amendments 38 [(dated December 3, 2025) of proposed Ordinance 2964] do not include limitations on 39 the number of clients for Type B home occupations in subsection (9)(a) of the use- 40 specific standards for home occupations. 41 42 4. Urban agriculture businesses. The Commission received written testimony in Exhibit G- 43 1 and oral testimony at the hearing expressing concerns that the proposed regulations 44 for uses that would be newly-classified as Urban Agriculture in LOC 50.03.004.1.b.vii LU 25-0002 Exhibit B-1/Page 3 of 5 EXHIBIT B-1 APPROVED: 12/08/2025 1 [see pgs. 6-7 of the October 17, 2025 Draft Code Amendments] would be overly 2 burdensome on such businesses. Specifically, the commenter in Exhibit G-1 argued that 3 the proposed limitation of 10 clients at a time for an Urban Agriculture use would be 4 detrimental to his business. He noted that his current business regularly accommodates 5 up to 30 persons at a time and has been operating without complaints from neighbors. 6 He requested that the limitation on clients be increased from 10 to 30. 7 8 The Commission concurs with the concerns raised by commenters about limitations on 9 the number of clients that can visit an Urban Agriculture business. The Commission finds 10 that instead of placing a specific limit on the number of clients that would apply to all 11 Urban Agriculture uses, the maximum number of clients allowed should be determined 12 as part of the conditional use approval process. A conditional use is a discretionary 13 process that allows the City to consider whether the impact of client visitation can be 14 mitigated or if there are characteristics of the site that might lessen concern of impacts 15 on neighbors. This allows for flexibility in the number of clients that would be allowed 16 considering the characteristics of the site and other mitigating factors. The conditional 17 use process also includes opportunity for public comment and appeal. 18 19 The Commission's recommended draft Community Development Code amendments 20 [(dated December 3, 2025) of proposed Ordinance 2964] includes the following 21 modification: 22 23 vii. Urban Agriculture. Urban agriculture is permitted with a Conditional Use 24 Permit. 25 26 /// 27 28 (3) On-site sales and serving are allowed, subject to the following additional 29 standards: 30 31 /// 32 33 (c) A maximum of 10 clients, including persons accompanying clients, 34 arc permitted on the property at the same time. A maximum 35 number of clients or customers permitted on the property at the 36 same time will be determined as part of the conditional use 37 approval. 38 39 5. Outdoor activity. The Commission considered the extent to which outdoor activity 40 should be limited for Type B home occupation businesses. Staff proposed two options, 41 one of which would limit outdoor activity for Type B businesses by applying additional 42 restrictions (Option 1), and the other of which would institute an outright ban on 43 outdoor activity for Type B businesses, consistent with existing policy (Option 2). 44 LU 25-0002 Exhibit B-1/Page 4 of 5 EXHIBIT B-1 APPROVED: 12/08/2025 1 The Commission finds that it is reasonable to permit some outdoor activity involving 2 clients or customers and that other standards, such as the Nuisance Code, can help 3 address potential impacts to surrounding properties. 4 5 The Commission recommends Option 1 because it provides home-occupation business 6 owners with greater flexibility for limited outdoor activities while still minimizing 7 potential impacts on surrounding properties. 8 9 ORDER 10 11 IT IS ORDERED BY THE PLANNING COMMISSION of the City of Lake Oswego that: 12 13 The Planning Commission recommends that proposed Ordinance 2964, with Attachment 2, 14 dated December 3, 2025 [LU 25-0002] be approved by the City Council, with changes to the 15 specific use standards for home occupations and urban agriculture. 16 17 18 I CERTIFY THAT THIS ORDER was presented to and APPROVED by the Planning Commission of 19 the City of Lake Oswego. 20 21 DATED this 8th day of December, 2025. 22 23 24 25 26 /s/ Don Mitchell, Chair 27 Don Mitchell, Chair 28 Planning Commission 29 30 PRELIMINARY RECOMMENDATION — November 24, 2025 31 32 AYES: Moreno, Guiney, Slyh, Thwing 33 NOES: Mitchell 34 ABSTAIN: None 35 ABSENT: Naujock, Bruce 36 37 ADOPTION OF FINDINGS AND ORDER— December 8, 2025 38 39 AYES: Moreno, Guiney, Slyh, Thwing, Naujock, Bruce 40 NOES: Mitchell 41 ABSTAIN: None. 42 ABSENT: None. LU 25-0002 Exhibit B-1/Page 5 of 5 EXHIBIT C-1 APPROVED: 01/12/2026 0 �"� ems, CITY OF LAKE OSWEGO Planning Commission Minutes �• ° November 24, 2025 °REGO�� 1. CALL TO ORDER Chair Mitchell called the meeting to order at 6:33 p.m., in the Council Chamber of City Hall, 380 A Avenue, Lake Oswego, OR 97034. 2. ROLL CALL Members present were Chair Don Mitchell and Commissioners Diana Moreno, Bryan Guiney, Jeremy Slyh, and Jim Thwing. Vice Chair Rachel Naujock and Commissioner James Bruce were absent. Council Liaison, Aaron Rapf, was not present. Staff present were Jessica Numanoglu, Community Development Director; Erik Olson, Long Range Planning Manager; Michael McNamee, Associate Planner; Bill Youngblood, Senior Code Enforcement; Ashleigh Dougill, Consulting Counsel (with Beery, Elsner& Hammond, LLP), and Cristina Siquina-Calderon, Administrative Support. 3. PUBLIC COMMENT- Regarding issues not on the agenda Dianne Cassidy, Lake Oswego, voiced concerns about notification procedures for quasi-judicial zone change applications and testified that all zone change applications should require citywide notification to be in compliance with the Citizen Involvement policies in the Comprehensive Plan. 4. COMMISSION FOR CITIZEN INVOLVEMENT(CCI) -GENERAL UPDATES Chair Mitchell shared that the Evergreen Neighborhood Association requested that the Evergreen neighbors take a short online survey to help determine their readiness to deal with natural disasters and other emergencies; a postcard announcement with details had been mailed to neighbors. 5. PUBLIC HEARING 5.1 Home Occupation Standards (LU 25-0002) The Commission held a hearing to consider a request to amend LOC 50.03.004(b)(ii), the use- specific standards for home occupation uses. This would replace an existing use-specific standard that is discretionary with new standards that are clear and objective. It would also amend the Residential Land Use Table (LOC 50.03.002.2) and Definitions (LOC 50.10.003.2) sections to add a new land use, to be called Urban Agriculture, which was proposed to be allowed as a conditional accessory use in the R-10 and R-15 low-density residential zones, and would amend the use-specific standards for accessory uses (LOC 50.03.004(b)) to add a section with standards for Urban Agriculture. The staff coordinator is Michael McNamee, Associate Planner. Respect. Excellence. Trust. 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY EXHIBIT C-1 Chair Mitchell opened the public hearing. Ms. Dougill outlined the applicable criteria, procedures, and testimony guidelines. There were no declarations of conflicts of interest. Staff Report Prior to detailing aspects of the following outline as part of his presentation of the staff report, Mr. McNamee added Exhibit G-1 to the record. Overview 1. Summary of Previous Work Sessions 2. Summary of Proposed Home Occupation Use Changes o Item #1 - Delete Sub-criterion (1) o Item #2 - Classify home occupations into three types (Type A- no customers onsite; Type B - customers may come onsite; Type C- short-term rentals) o Item #3 - Limit hazardous substances o Item #4- Reference nuisance laws (LOC 34.08 and 34.10 would apply) o Item #5 - Limit street commercial vehicle parking o Item #6 - Limit number of clients or customers permitted at one time (Type B businesses) o Item #7 - Limit or ban outdoor activity (two options for Type B businesses: allow small instructional classes of six or less, or ban completely) o Item #8 - Clarify the exemption for daycares and adult care homes o Item #9 - Create new use called "Urban Agriculture" (farm stand expansions into residential zones were no longer proposed): Exhibit G-1 raised an objection to the limit on persons permitted onsite at one time; indicating that the maximum of 10 would negatively impact their business. 3. Recommendation o Staff requests that the Planning Commission recommend approval of the proposed amendments to the Lake Oswego Community Development Code. 4. Tentative Schedule Questions of Staff Commissioner Guiney asked if there would be a way to waive the limit on the number of onsite clients for a limited duration. Mr. McNamee replied that there was no provision that would allow this waiver now. Commissioner Moreno noted that she thought she saw this was allowed once per year. Ms. Numanoglu relayed that businesses could apply for a Special Event permit, outside of regular business activity. Mr. McNamee confirmed for the Commission that Exhibit G-1 was the only written testimony received. Regarding the new Urban Agricultural Use, Chair Mitchell asked if there were any current codes regulating this. Mr. McNamee answered that it was regulated under the current Home Occupation Code. Looking at page 4 of the staff report, Chair Mitchell inquired where the feedback from existing businesses originated. Mr. McNamee stated that they contacted one existing urban agriculture business after the City Council requested more limiting restrictions on the use. Mr. McNamee informed members that Urban Agriculture would be permitted as a Conditional Use and any existing business would be grandfathered in, until they chose to expand. City of Lake Oswego Planning Commission Minutes of November 24, 2025 Exhibit C-1/Page 2 of 5 EXHIBIT C-1 Public Testimony Sam Hull, Lake Oswego resident, requested that Commissioners consider what privileges they could offer home-based businesses as things were taken away through new restrictions on home occupations (e.g.: prioritize farmer's market space for businesses based in Lake Oswego, provide opportunities for pop-up spaces, grant funding, or providing a path to get their business out of the home). He explained that, in some cases, agricultural licenses are required for businesses that utilize vegetation, such as flowers, but are not farming or growing their own product. He expressed concern that the new regulations could inadvertently classify his business as Urban Agriculture use, requiring a conditional use permit and other restrictions he could not meet. Dianne Cassidy, Lake Oswego resident, voiced concerns that businesses would be in jeopardy when limits were enforced as to the number of customers allowed at one time or as to the frequency when they could be onsite. She pointed out that no complaints against an existing winery in a residential neighborhood of the city had been made. She suggested giving nearby neighbors the ability to weigh in on the approval or denial of Home Business use applications. Chair Mitchell closed the public hearing. Deliberations Commissioner Moreno asked if other exemptions could be made when businesses already had certain requirements imposed for conducting business. Ms. Numanoglu addressed Mr. Hull's testimony by relaying that his business did not sound as if it fell under the classification for Urban Agriculture (the need for an agricultural license would not automatically include you in the classification for"urban agriculture"). Ms. Dougill added that state statutory restrictions were separate from the City's development code and would apply outside that context. Mr. Olson informed members that the City attempted to align the code with known state or federal exemptions, and those would not be preempted by the City's code. Chair Mitchell voiced concerns that the Commission aligned less after each City Council meeting, where new recommendations were given. He stated that he was still not in favor of approving these changes but understood the ambiguity around the current code and the concerns over enforcement. He opined that they were trying to do too much when the concerns were not being raised by the neighborhoods or the citizens of Lake Oswego, and that restrictions would apply to people they never intended them to apply to. All four of the other members present stated that they agreed with Chair Mitchell's last comment, in not wanting to overly restrict economic activities where the full impact of the restrictions could not be fully understood. Commissioner Moreno asked if they could agree to include the new urban agriculture use. Mr. Olson explained that this use was only necessary because of the other proposed amendments, and that if new restrictions would not be introduced, there would be no need to create a new use category. Ms. Numanoglu reminded members that no outdoor use was currently allowed under existing policy for home occupations and that the City Council recommended that both options for Item #7 be put forward. City of Lake Oswego Planning Commission Minutes of November 24,2025 Exhibit C-1/Page 3 of 5 EXHIBIT C-1 In reference to the nuisance code, Commissioner Slyh asked if the hours were similar to the current 9:00 am to 7:00 pm criterion. Mr.Youngblood answered that the current section was very broad in that they did not use any type of decibel measurement (any loud or disturbing unnecessary noise was illegal noise) and there were no time restrictions listed; however, code enforcement typically followed the police department standards of after 10:00 pm and before 7:00 am. Chair Mitchell outlined the options available for formatting the motion. Commissioner Moreno moved to recommend that the City Council not approve the staff recommendation, as presented. Ms. Dougill suggested phrasing it as "not approve this land use decision." A second to the motion was not made. Commissioner Slyh stated that he was hesitant to throw everything out; opining that there were a few good points worth keeping. Members discussed the pros and cons of each item, then took a straw poll vote of the items one-by-one, with the following results: o Item #1 - Delete Sub-criterion (1): straw poll vote not taken on this item. o Item #2 - Classify home occupations into three types: unanimous "yes" vote. o Item #3 - Limit hazardous substances: unanimous "no" vote (potential for unnecessary consequences and already covered by Oregon State law). o Item #4- Reference nuisance laws: unanimous "yes" vote. o Item #5 - Limit street commercial vehicle parking: unanimous "no" vote (unknown or unforeseeable problem causing the need for the adjustment with the potential for unintended consequences). o Item #6 - Limit number of clients or customers permitted at one time: unanimous "no" vote (unknown or unforeseeable problems, causing the need for the adjustment with the potential for unintended consequences). o Item #7 - Limit or ban outdoor activity 1. Option 1: Permit outdoor classes or demonstrations with limit of six clients, a limit on hours of operations and banning outdoor activity with clients on Sundays and public holidays. Unanimous "yes" vote. 2. Option 2: Bans all outdoor activity with clients, consistent with existing internal policy. o Item #8 - Clarify the exemption for daycares and adult care homes: unanimous "yes" vote. o Item #9 - Create new use called "Urban Agriculture": Ms. Numanoglu recommended that the number of visitors permitted at one time be established during the review of the Conditional Use Permit rather than specifying an exact limit. All members agreed with this recommendation. Commissioner Guiney moved to advance LU 25-0002, as written, except striking Items 3, 5, and 6, to move forward with Option 1 for Item 7a, and to change the proposed limitation on client visitation to urban agriculture businesses so that it will be determined on a case-by-case basis based on individual Conditional Use Permits instead of being a specific number. Commissioner Slyh seconded the motion, and it passed 4:1. Chair Mitchell voted no. Ms. Dougill directed staff to return with the Written Findings,Conclusion, and Order for this preliminary recommendation on December 8, 2025, at 6:30 p.m. 6. OTHER BUSINESS None. City of Lake Oswego Planning Commission Minutes of November 24,2025 Exhibit C-1/Page 4 of 5 EXHIBIT C-1 7. SCHEDULE REVIEW Mr. Olson reviewed the schedule. Action Items: • Members will consider the Findings for this hearing, hold a work session on the Tree Regulation Amendments project, and hold the continued hearing for the zone change application at 4000 Kruse Way Place on December 8, 2025. • Members will consider the Findings for 4000 Kruse Way Place and receive a presentation on the Foothills District Plan Update on January 12, 2026. • Members will hold a work plan review on January 26, 2026. 8. ADJOURNMENT There being no further business, Chair Mitchell adjourned the meeting at 8:16 p.m. City of Lake Oswego Planning Commission Minutes of November 24, 2025 Exhibit C-1/Page 5 of 5 EXHIBIT D-1 C61s4„, MEMORANDUM 1j ORE ) cl TO: Planning Commission FROM: Michael McNamee SUBJECT: Home Occupation Code Update (LU 25-0002) Work Session #1 DATE: January 16, 2025 MEETING DATE: January 27, 2025 EXECUTIVE SUMMARY&ACTION REQUESTED This memo provides background for the Commission's January 27 work session on the City's home occupation standards. In particular, the discussion will focus on LOC 50.03.004.1.b.ii(1), which states that a home occupation shall not "alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood." Staff will present options for potential standards that are more clear, objective, and easier for Code Enforcement staff to enforce. The Commission will be asked to provide direction on which policy or code requirements should be further researched prior to the second work session in February. BACKGROUND Home occupations are a type of business that is conducted from a residential dwelling unit. This is distinct from an employee of a business headquartered offsite who works from home. Examples of home occupations include offices for professionals who see clients in their homes like psychologists or attorneys, artisans who manufacture and distribute goods, and home daycares. As defined in the Community Development Code (CDC), a home occupation has to be secondary to the primary use of a dwelling for dwelling purposes. Specific use standards apply to home occupations, which can be found in the Accessory Structures and Uses section of the CDC (LOC 50.03.004.1.b.ii): A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: (1) The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (2)A current and valid business license is maintained. Respect. Excellence. Trust. Service 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO OR 97034 WWW.LAKEOSWEGO.CITY LU 25-0002 EXHIBIT D-1/PAGE 1 OF' 15 EXHIBIT D-1 Page 2 of 5 (3) No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping, yard maintenance, or other domestic services for the dwelling where the business occurs. (4) No outside storage of goods or materials other than vegetation. (5) No more than 25%of the aggregate floor area on the lot is devoted to nonresidential use, except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met. (6) Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited. (7)Short-term rentals shall meet the following additional standards: (a)A person who owns a lot containing a short-term rental(primary or secondary dwelling unit) must maintain their primary residence on the lot. The owner is not required to be on the lot when the dwelling is rented. (b) No other commercial uses are allowed in conjunction with or accessory to a short-term rental. The short-term rental shall not be marketed for group events such as weddings, classes, or similar events,for example. Subcriterion (1) (in bold, above) uses language that is difficult to enforce because it is not clear or objective. Altering the residential character of a neighborhood and infringing upon the rights of residents in the vicinity to the peaceful enjoyment of the neighborhood are ideas that are too abstract to be measurable. As a result, it can be difficult for home occupation applicants, the public, and Code Enforcement to understand the limitations of a home occupation. The purpose of this project is to replace this standard with new code language that distills the concepts of not altering neighborhood character and peaceful enjoyment of the neighborhood into measurable, objective standards that provide a clear path for compliance and enforcement. Staff discussed this idea with the City Council at their meeting on June 18th, 2024, as part of a general update about civil violation code enforcement. At the meeting, the Council expressed support for studying how to replace Subcriterion (1) with clear and objective code language. POTENTIAL ALTERNATIVES Staff conducted research into the home occupation requirements of several cities in the Portland metropolitan region and elsewhere in the state. As a reference point, the code standards adopted by the City of Portland are included as Attachment 1. There are several ways home occupations can be regulated that are intended to address neighborhood character and quiet enjoyment of the surrounding neighborhood. Some of the most common are: • Limits on noise, emissions, or other similar impacts from the business • Limits on client visitation, business-related vehicles, and deliveries • Limiting or banning modifications to the dwelling • Requiring business activities to take place inside a building — Respect. Excellence. Trust. Service. LU 10-UUU1 tAMIbI 1 U-1/I'HLIt I Ur 10 EXHIBIT D-1 Page 3 of 5 Each of these concepts has the potential to be much clearer and more objective than existing Subcriterion (1). However, some may still be difficult to enforce or come with other drawbacks. Planning staff discussed these ideas internally and has developed some initial recommendations, as discussed below. A summary of those discussions is included in Attachment 3. Code Enforcement staff also provided comments on the home occupation regulations of some nearby jurisdictions and those are provided in Attachment 2. Limits on noise, emissions, or other similar impacts from the business Some home occupations have the potential to create noise, emissions, vibrations, or other impacts that could affect neighborhood character or quiet enjoyment of the neighborhood. It might make sense to place limitations on these types of impacts. Some cities have limitations on the decibel levels that can be created by a home occupation. However, enforcement can be a challenge because noise is transient and difficult to catch and measure when the violation is occurring. Code Enforcement staff have advised against that specific style of regulation for this reason. One approach could be to limit the type of mechanical equipment or tools allowed on site that are related to the business. For example, the City could limit the voltage or type of equipment used for the proposed business to what would be typical for a dwelling. Staff recommends considering this type of approach in the forthcoming draft CDC amendments. Limits on client visitation, business-related vehicles, and deliveries Not all home occupation uses involve client visits, commercial vehicles, or business-related deliveries, but those that do can have an impact on the quiet enjoyment of residential neighborhoods or neighborhood character. A common complaint about home occupations, especially in neighborhoods that are primarily residential, are that they produce more traffic. Many jurisdictions place some kind of limitation on these activities. For example, a City might limit the number of clients that can visit per day or hour. The time of day for client visitation or business-related deliveries might be limited to daytime hours to limit disruption to the neighborhood at night. The number of commercial fleet vehicles related to the business that are parked on site might be limited or banned. Staff recommends considering this type of regulation for inclusion in the forthcoming draft CDC amendments. Limiting or banning modifications to the dwelling Some other cities have limitations on modifications to a dwelling that has a home occupation, and some outright ban them. Limiting building modifications is intended to be a way to preserve neighborhood character, by keeping the dwelling looking like a typical residence. However, it seems to be difficult to craft regulations that are objective and measurable. For example, Portland's regulation states: The dwelling and site must remain residential in appearance and characteristics. Internal or external changes which will make the dwelling appear less residential in nature or Respect. Trust. Service. LU L5-000L t1U'1It3I I U-1/I'HC,t .S Ur 10 EXHIBIT D-1 Page 4 of 5 function are prohibited. Examples of such prohibited alterations include construction of parking lots, paving of required setbacks, or adding commercial-like exterior lighting. While some of the examples provided in the regulation are concrete and easily enforceable, the language overall is open to a wide amount of interpretation. Determining which modifications would make a building "appear less residential in nature" would be difficult for applicants and City staff alike. Given that the purpose of this effort is to create clearer and more objective home occupation standards, staff does not recommend including this type of regulation in the draft CDC amendments. Requiring business activities to take place inside A common regulation for home occupation uses in other cities is to require business activities to take place inside a building. This helps to limit noise and similar types of impacts. It can also help preserve neighborhood character by limiting the visual impact of a home business. Home business activities that take place outside could also have an impact on the quiet enjoyment of the neighboring area. In Lake Oswego, home occupation owners are already banned from storing anything related to the business outside. Staff recommends considering extending this regulation to business activities as well. PROJECT SCHEDULE The proposed project schedule for the adoption of amendments to the City's home occupation standards is included below: Discussion of Alternatives for Home Planning Commission Work Session#1 Jan 27, 2025 Occupation Standards Review of Draft Community Planning Commission Work Session#2 Feb 24 Development Code Amendments Present Recommendations and City Council Work Session Mar 4 Discuss Draft Amendments Adoption of Community Planning Commission Public Hearing April 28 Development Code Amendments Planning Commission Findings May 12 City Council Public Hearing Jun 3 City Council Findings Jul 17 Effective Date: August 16, 2025 — Respect. Excellence. Trust. Service. LU 10-UUU1 tAMIbI 1 U-1/I'HCIt 4 Ur 15 EXHIBIT D-1 Page 5 of 5 ATTACHMENTS 1. City of Portland Home Occupation Requirements 2. Code Enforcement Comments on Home Occupation Regulations of Other Municipalities 3. Summary of 12/12/24 and 1/8/25 Code Enforcement and Planning Staff Discussions Respect. xcellence. Trust. Service. LU 10-000I tAr111511 U-1/F'HUt 0 Ur 10 EXHIBIT D-1 Title 33, Planning and Zoning Chapter 33.203 10/01/24 Accessory Home Occupations 33.203 Accessory Home Occupations 203 Sections: 33.203.010 Purpose 33.203.015 Adjustments and Modifications 33.203.020 Description of Type A and Type B Accessory Home Occupations 33.203.030 Use-Related Regulations 33.203.040 Site-Related Standards 33.203.050 Impact-Related Standards 33.203.060 Type B Home Occupation Permit 33.203.010 Purpose Accessory home occupations are activities accessory to uses in the Household Living category.They have special regulations that apply to ensure that home occupations will not be a detriment to the character and livability of the surrounding neighborhood.The regulations ensure that the accessory home occupation remains subordinate to the residential use, and that the residential viability of the dwelling is maintained.The regulations recognize that many types of jobs can be done in a home with little or no effects on the surrounding neighborhood. 33.203.015 Adjustments and Modifications Adjustments and modifications to the requirements of this chapter are prohibited. 33.203.020 Description of Type A and Type B Accessory Home Occupations There are two types of home occupations,Type A and Type B. Uses are allowed as home occupations only if they comply with all of the requirements of this chapter. A. Type A.A Type A home occupation is one where the residents use their home as a place of work; however, no employees or customers come to the site. Examples include artists, crafts people, writers, and consultants.Type A home occupations also provide an opportunity for a home to be used as a business address but not as a place of work. B. Type B.A Type B home occupation is one where the residents use their home as a place of work, and an employee and customers may come to the site. Examples are counseling, tutoring, and hair cutting and styling. C. Accessory short-term rentals.The regulations for accessory short-term rentals are stated in Chapter 33.207. D. Family child care homes. Registered or certified family child care homes for up to 16 children,that also meet the State's requirements of ORS 329A, are exempt from the regulations of this chapter. 33.203.030 Use-Related Regulations A. Allowed uses.The intent of the regulations of this chapter is to establish performance standards for all accessory home occupations rather than to limit the allowed uses to a 203-1 LU 25-0002 ATTACHMENT 1/PAGE 1 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 6 OF 15 EXHIBIT D-1 Chapter 33.203 Title 33, Planning and Zoning Accessory Home Occupations 10/01/24 specific list. Uses which comply with the standards of this chapter are allowed by right unless specifically listed in Subsection B. below. B. Prohibited uses. 1. Any type of repair or assembly of vehicles or equipment with internal combustion engines (such as autos, motorcycles, scooters, snowmobiles, outboard marine engines, lawn mowers, chain saws, and other small engines) or of large appliances (such as washing machines, dryers, and refrigerators) or any other work related to automobiles and their parts is prohibited. 2. Accessory home occupations may not serve as headquarters or dispatch centers where employees come to the site and are dispatched to other locations. 3. A Type B accessory home occupation is prohibited in a dwelling unit with any accessory short-term rental. C. Additional Type B home occupation regulations.The following additional regulations apply to Type B home occupations. 1. Hours. Customers may visit the site only during the hours of 7 am to 9 pm. 2. Nonresident employees. One nonresident employee is allowed with a Type B home occupation. For the purpose of this Chapter,the term "one nonresident employee" includes an employee, business partner, co-owner, or other person affiliated with the home occupation, who does not live at the site, but who visits the site as part of the home occupation. 3. Customers. Up to 15 customers or clients may visit the site in a day. 4. Retail sales. Retail sales of goods must be entirely accessory to any services provided on the site (such as hair care products sold as an accessory to hair cutting). 5. Number of Type B home occupations. More than one Type B home occupation per dwelling unit is prohibited. 33.203.040 Site-Related Standards A. Outdoor activities. 1. All activities associated with an accessory home occupation must be in completely enclosed structures on the site, excluding activities or services that, by their nature, must be conducted off site. Examples of accessory home occupations where activities or services must be conducted off site include house painting, landscape maintenance, or chauffeuring services. 2. Exterior storage or display of goods or equipment is prohibited. B. Appearance of structure and site.The dwelling and site must remain residential in appearance and characteristics. Internal or external changes which will make the dwelling appear less residential in nature or function are prohibited. Examples of such prohibited alterations include construction of parking lots, paving of required setbacks, or adding commercial-like exterior lighting. 203-2 LU 25-0002 ATTACHMENT 1/PAGE 2 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 7 OF 15 EXHIBIT D-1 Title 33, Planning and Zoning Chapter 33.203 10/01/24 Accessory Home Occupations 33.203.050 Impact-Related Standards A. Nuisances.Accessory home occupations are regulated by the standards contained in Chapter 33.262, Off-Site Impacts, except noise,which is regulated by Subsection C. below. B. Hazardous substances. Hazardous substances are prohibited, except that consumer quantities are allowed. Consumer quantities of hazardous substances are packaged and distributed in a form intended or suitable for sale through retail sales outlets for consumption by individuals for purposes of personal care and household use. C. Noise.The maximum noise level for a home occupation is 50 dBA. Noise level measurements are taken at the property line. Home occupations that propose to use power tools must document in advance that the home occupation will meet the 50 dBA standard. D. Vehicles. No more than one vehicle may be used in association with the home occupation. The maximum size of the vehicle used in association with the home occupation is a pickup truck in the medium truck category. E. Deliveries.Truck deliveries or pick-ups of supplies or products, associated with the home occupation, are allowed at the home only between 8 am and 5 pm. Vehicles used for delivery and pick-up may not include heavy trucks. 33.203.060 Type B Home Occupation Permit A. Purpose. Permits for Type B home occupations must be obtained from PP&D prior to their establishment, to ensure the following: • That the applicant is aware of the provisions of this chapter which govern accessory home occupations; • That the City has all information necessary to evaluate whether the proposal initially meets and continues to meet code regulations; and • That the distribution and location of Type B home occupations can be documented. B. Procedure.A home occupation permit for Type B home occupations will be issued by PP&D for a two year period. It is the responsibility of the applicant to obtain the permit every two years.The review process requires the applicant to agree to abide with the requirements of this chapter and sign a form showing agreement to these conditions and documentation that the proposal is a Type B home occupation.The applicant must demonstrate compliance with the neighborhood notice requirement, described in Subsection C. below. C. Neighborhood notice. 1. Purpose.The purpose of this requirement is to notify the neighborhood association and nearby property owners of the establishment of a Type B accessory home occupation,the type of activities which will occur, and the regulations under which the use must operate. 203-3 LU 25-0002 ATTACHMENT 1/PAGE 3 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 8 OF 15 EXHIBIT D-1 Chapter 33.203 Title 33, Planning and Zoning Accessory Home Occupations 10/01/24 2. Process. a. Notice content.The applicant must complete a notice which describes the standards set forth in this chapter,the type of business activities to take place at the site,the hours of operation, and either the nonresident employee or the expected number of customers on a daily basis. b. Notice recipients. All recognized organizations whose boundaries include the site must receive the notice. In addition, all owners of the property abutting or across the street from the site must receive the notice. See Figure 203-1 for a description of the notice area.The applicant must submit to PP&D a list of the addresses notified, a copy of the notice which was sent, and a signed statement verifying that this requirement has been met. It is the responsibility of the applicant to gather the information to fulfill this requirement. Figure 203-1 Home Occupation Notice Area —I-—-El ---1-- \, Notice of the home 1-1 I occupation is sent to the owners of these sites. — SITE � STREET ElIi El �I I 1 1 1 __f---F D. Revocation.A Type B home occupation permit can be revoked for failure to comply with the regulations of this Chapter,through the procedures identified in Section 3.30.040 of Title 3, Administration. When a Type B home occupation permit has been revoked, a new Type B home occupation permit will not be issued to the applicant or other persons residing with the applicant for 2 years. (Amended by: Ord. No. 164264, effective 7/5/91; Ord. No. 171879, effective 2/2/98; Ord. No. 174263, effective 4/15/00; Ord. No. 175204, effective 3/1/01; Ord. No. 176469, effective 7/1/02; Ord. No. 178509, effective 7/16/04;Ord. No. 182429, effective 1/16/09;Ord. No. 186639, effective 7/11/14; Ord. No. 186736, effective 8/29/14; Ord. No. 187216, effective 7/24/15; Ord. No. 191779, effective 10/1/24.) 203-4 LU 25-0002 ATTACHMENT 1/PAGE 4 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 9 OF 15 EXHIBIT D-1 Other Municipalities Home Occupation Regulations Code Enforcement Comments 12-20-24 City of Tigard: Purpose 18.760.010/Applicability 18.760.020 Comments: - Provide a clear Purpose/Applicability section at the start of the regulations to state the overall goals of the regulations. Approval Process 18.760.030 A. Type I Home Occupations B. Type II Home Occupation permit Comments: - Consider a two-tier Home Occupation use o Type 1 uses are simple home office type uses from a defined use list o Type 2 uses are more intense uses (persons visit the home business, need available parking, etc.)and require an administrative approval where conditions can be applied General Provisions 18.760.050 - Comments: o D. Require the Home Occupation use to be operated entirely within the dwelling unit. o I. Provide list of uses/activities not allowed as a Home Occupations o J. Prohibit exterior storage associated with the Home Business 18.760.070 Conditions of Approval: - Comments: o Include a list of typical conditions of approval with the ability to add additional conditions due to site or use specific issues. LU 25-0002 ATTACHMENT 2/PAGE 1 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 10 OF 15 EXHIBIT D-1 City of Wilsonville: Guidelines and restrictions in regards to operating a business from your home. - Comments: o Brochure specially on Home Occupations is a good idea since they are so common. ■ The information from the brochure can also act as an application worksheet. o Suggested standards to consider: ■ No structural alteration or changes to the exterior of the dwelling to make it look like a business ■ No display of merchandise which can be seen from the exterior of the dwelling. ■ Limit number of persons attending an instruction class. ■ Reference LOC 34.08 Nuisances,for compliance with regulations for noise, debris, etc. rather than creating one or more new nuisance standards for Home Occupations City of Gladstone: 17.78.030 Prohibited Home Occupations: - Comments: o Prohibit businesses that by their nature are unable to function without changing the residential character of the community. (pool rental, seminar/instructional gatherings, mechanical or automotive repair, welding, etc.) 17.78.040 Approval Criteria and standards: - Comments: o Standards are needed to: ■ Prohibit Home Occupation deliveries from heavy trucks (more than two axles); ■ Prohibit exterior storage of goods, equipment or materials; ■ Limit storage of hazardous materials; ■ Limit operating hours for visitors to the business; City of Milwaukie: 19.507.2 Prohibitions and Use Restrictions. - Comments: o If on-site instruction is allowed as Home Occupation—limit number of attendees. LU 25-0002 ATTACHMENT 2/PAGE 2 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 11 OF 15 EXHIBIT D-1 19.507.4 Enforcement. - Comments: o It is good practice to call out types of actions that are violations of the Home Occupation regulations: ■ Lapse of business license when business operation continues; ■ Failure to comply with a standard; ■ Failure to comply with a condition; ■ Failure to comply with a Nuisance regulation;etc. City of Portland: 33.203.020 Description of Type A and Type B Accessory Home Occupations. - Comments: o Good code structure for regulations! ■ Purpose ■ Two types of Home Occupation licenses(A & B) ■ Allowed uses ■ Prohibited uses ■ Type B regulations • Customers and one employee may visit • Limited customer hours • Limited retail sales available • Only one Type B allowed per dwelling unit ■ Site-Related Standards • Business activities limited to completely enclosed structures • No exterior storage allowed ■ Impact-Related Standards • Nuisances • Hazardous substances • Vehicles • Deliveries ■ Type B Home Occupation Permit • Purpose • Procedure • Neighborhood notice • Revocation LU 25-0002 ATTACHMENT 2/PAGE 3 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 12 OF 15 EXHIBIT D-1 City of Tualatin: 34.055 Standards - Comments: o Good standards: ■ Home Occupation shall not be used as a headquarters or meeting location for the assembly of employees or subcontractors for any reason, including staging or dispatch of employees or subcontractors to other locations. Off- site employees and subcontractors may not keep their motor vehicles at the home occupation during a workday. ■ Only one motor vehicle not exceeding 15,000 pounds GVW may be permitted for use in the Home Occupation. No other motor vehicle storage is permitted for the home occupation. No commercial motor vehicle as defined in ORS 801.208, is allowed. ■ No employee, client, subcontractor or delivery trips to the home occupation may be made between 10:00 p.m. and 7:30 a.m. Oregon City: Worksheet. - Comments: o Requiring the applicant to complete and initial a Worksheet of the regulations is a good idea! LU 25-0002 ATTACHMENT 2/PAGE 4 OF 4 LU 25-0002 EXHIBIT D-1/PAGE 13 OF 15 EXHIBIT D-1 Notes from Home Occupation Discussions Code Enforcement Discussion—12/12/2024 Project planner discussed with Code Enforcement staff the enforceability of the existing ordinance and how enforceable regulations from other cities might be. Feedback is below. • Noise restrictions—decibel limits very difficult to enforce. Hard to catch when violation is happening. Hard to distinguish from noise that might be occurring at residence separate from the home occupation. Limiting types of tools that might produce noise instead could be easier to enforce, although assistance from the Building Department might be needed. • Client visitation, restriction on number of clients per day or hours when clients can visit—can be difficult to enforce. Enforcement staff cannot sit outside of home occupation and count the number of people who visit or distinguish them from people who are visiting the residents of the home for reasons unrelated to the business. Number of trips generated can be enforced but at time of application only. • Limits on number or type of nonpersonal vehicles—can be enforced. • Modifications to exterior of building with home occupation—can be enforced. • Banning hazardous materials—can be enforced with assistance from Fire Department. • Deliveries, limiting time of day—can be difficult to enforce. Similar to client visitation, hard to monitor throughout the day. • Business activity required to take place inside an enclosed structure—can be enforced. • Not allowed on a lot with middle housing—can be enforced. • No idling of delivery vehicles outside of the home occupation—difficult to enforce. Hard to catch the violation when it is occurring. Planning Staff Discussion—1/8/2025 Project planner discussed peer city code research and Code Enforcement feedback with general Planning staff Feedback as below. • Some cities break their home occupations into two types—generally one that is for less intense uses and another for more intense uses, especially those that generate traffic. Different standards apply to each type, usually to regulate impact of traffic. Could be something to consider for Lake Oswego, but would need a solid reason to do it because it would also make regulations more complicated. • Neighborhood notice could be considered for some types of home occupations, but the opportunities for neighbors to stop a home occupation license from being issued would be extremely limited, and sending a notice can seem to imply that an action can be taken. Despite this, it would likely still create more work for staff to explain to neighbors what is happening whenever a new license is applied for or renewed. • The idea of limiting business activity to inside of an enclosed structure seems straightforward and easy to enforce, and would likely address much of the impact to neighborhood character and quiet enjoyment. Needs further research. • Limiting equipment that makes noise or emissions could also address neighborhood character and quiet enjoyment, and would also need more research. LU 25-0002 ATTACHMENT 3/PAGE 1 OF 2 LU 25-0002 EXHIBIT D-1/PAGE 14 OF 15 EXHIBIT D-1 • Not allowing building modifications that detract from the residential character of a building would be complicated to enforce or draft regulations for, and might be too restrictive. • Limiting client visitation and/or deliveries, especially banning them at night or early in the morning, could be a way to address some of the traffic impact that the public is concerned with. LU 25-0002 ATTACHMENT 3/PAGE 2 OF 2 LU 25-0002 EXHIBIT D-1/PAGE 15 OF 15 EXHIBIT D2 p461s4„, MEMORANDUM C15REG ) TO: Planning Commission FROM: Michael McNamee, Associate Planner Planning Department SUBJECT: Home Occupation Code Update (LU 25-0002) Work Session #2 DATE: April 7, 2025 MEETING DATE: April 14, 2025 EXECUTIVE SUMMARY&ACTION REQUESTED This memo provides background for the Planning Commission's (Commission) April 14 work session on the City's home occupation standards. The Commission will be provided with an update on the project, including the results of a survey that was sent to home occupation license holders and feedback that was received from the City Council at a study session on April 1. The Commission will be asked to provide input on draft code language that staff has developed since the first Commission work session in January 2025. BACKGROUND The City's use-specific standards for home occupations can be found in the Accessory Structures and Uses section of the Community Development Code (CDC) (LOC 50.03.004.1.b). Subcriterion (1) of the use-specific standards for home occupations uses language that is neither clear nor objective: A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: (1) The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. /// "Altering the residential character of a neighborhood" or "infringing upon the rights of residents in the vicinity to the peaceful enjoyment of the neighborhood" are standards that are Respect. Trust. 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY LU 25-0002 EXHIBIT D-2/PAGE 1 OF 74 EXHIBIT D2 Page 2 of 14 difficult to measure before the business has commenced operation. This language makes it difficult for home occupation applicants, neighbors, the general public, and staff to understand and enforce the limitations of a home occupation. The purpose of this project is to replace Subcriterion (1), above, with new code language that distills the concepts of"residential character" and "peaceful enjoyment of the neighborhood" into measurable, objective standards that provide a clear path for approval and ongoing compliance for home occupations. Staff discussed this idea with the City Council at their meeting on June 18, 2024 as part of a general update on code enforcement. The Council expressed support and directed staff to study how to replace Subcriterion (1) with clear and objective code language. Staff performed research into home occupation regulations for peer jurisdictions to help provide a starting point for potential new regulations. Staff took those ideas to the Planning Commission at its first work session on this project on January 27, 2025. The Commission provided staff with initial feedback on a range of potential new code concepts to replace Subcriterion (1), which has been incorporated into the refined code concepts in the discussion section below. The City Council also held a study session on this project on April 1, 2025. Staff also discussed this project with the Neighborhood Chairs Committee at their meeting on January 18, 2025. HOME OCCUPATION TYPES At the first work session, the Commission asked staff for more information about the mix of home occupation types. The City maintains a list of active business licenses, which is publicly available information. From this list, staff was able to determine the most common types of home occupation licenses (out of the 576 active licenses as of January 1, 2025). Similar business classifications have been included together. See Attachment 4 for a detailed breakdown of business categories. 1. Interior designers (6.4% of total) 2. Construction-related businesses (5.4% of total) 3. Administrative management services (5.2% of total) 4. Professional, scientific, and technical services (4.1% of total) 5. Computer or software services (4.0% of total) 6. Business management services (3.4% of total) 7. Educational services (3.3% of total) 8. Real estate services (2.9% of total) 9. Mental health services (2.8% of total) 10. Art and artists (2.6% of total) The top ten categories make up approximately 39.5% of all home occupation licenses. Much of the list is made up of professional services, the most common of which being interior design services. Many of these businesses could involve client visits to the home occupation site, but it is unlikely that they all do. An interior designer, for example, could take meetings with clients at Respect. Trust. LU 25-0002 EXHIBIT D-2/PAGE 2 OF 74 EXHIBIT D2 Page 3 of 14 their home, but would be just as or more likely to have meetings at the client's residence or somewhere else. Construction-related businesses are also very common, with numerous types of contractor businesses being represented. While unlikely to have clients at their home, this type of business is more likely to have at least one work-related vehicle parked at home because of the need to carry equipment to construction sites. SURVEY OF HOME OCCUPATION LICENSE HOLDERS Staff developed a survey for residents with active home-based occupations to rank their understanding of and ability to comply with the City's existing requirements, and to get a sense of how potential new code concepts could impact their business (Attachment 1). On February 26, the survey was sent to the 558 business licensees who had an active home-based business in the city and an email address on file. The survey was open for three weeks, and was closed on March 19. At its close, 157 people responded, which is a roughly 28% response rate. A report summarizing the responses from the survey is attached to this memo as Attachment 3. The survey had four sections: Section 1 — Background Information: This section asked for information about the business owned by the respondent, including the type of business, how many nonpersonal vehicles associated with the business are parked at home, and how much money is saved by operating the business at home, if any. Section 2 - Existing Requirements: This section asked respondents to rank their understanding of existing zoning requirements for home occupations, as well as their ability to comply with those requirements. If complying with the requirement was identified as a burden to the business, respondents were asked to explain why. Section 3 — Potential Concepts: This section asked respondents about seven potential concepts to replace Subcriterion (1) of the existing zoning regulations. As in Section 2, respondents were asked to rank their level of understanding and theoretical ability to comply with the potential replacements. Respondents were also given the ability to explain why any of the concepts might be a burden to their business. Section 4— Feedback: This section included a feedback form for general comments. Section 1 —Background Information Staff asked four questions in this section: 1. Do you have a home occupation business license in Lake Oswego? 2. What kind of business do you operate? 3. Are/would there be nonpersonal vehicles associated with your business parked at your home? If so, how many? 4. Does/would operating your business from home save you money compared to operating elsewhere? If so, could you estimate how much? — Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 3 OF 74 EXHIBIT D2 Page 4 of 14 The answers help provide some initial context to the City about the operations of a home occupation business. All fields were optional to encourage those who might be concerned about any potential code enforcement to continue with the survey. The survey asked respondents to identify the type of business they run to help provide context to their answers. Similar to the overall breakdown of home occupation businesses, most respondents indicated that they were providing some sort of professional service (see Attachment 3). Contractors, one of the most common home occupation license holders overall (5.4% of all home-based licenses), were underrepresented in the sample, with about 3.2% of the respondents indicating they were a contractor or did construction work. In general, businesses that may be considered higher impact, with heavy client visitation, work vehicles, or outdoor activities, are not widely represented in the sample, but this does seem to reflect the overall breakdown of home occupation types. Respondents were asked if they parked any "nonpersonal" vehicles at home that were associated with their home occupation business. Of the 157 respondents, 12 responded yes (8%) (see Attachment 3). However, it appears most of the "yes" respondents interpreted the question to mean "do you ever have client vehicles parked at your home," even though the intention was to get a sense of the impact of work-related vehicles. Of the 12 who responded yes to this question, only two appear to be the type of business that would actually have a work-related vehicle at home, and the rest appear to be referring to client vehicles. Of the two respondents referring to work-related vehicles, the first has one work-related vehicle parked at the residence, and the other has two. Next, respondents were asked if operating from home saved them any money compared with operating elsewhere, and if so, how much. Almost all respondents, 144 of 157, said yes (92%), with 8 being unsure and 5 saying no. If they answered yes, respondents were also asked to estimate how much money was saved by operating from home. Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 4 OF 74 EXHIBIT D2 Page 5 of 14 How much money are you saving by operating your business from home? 60 53 50 40 33 29 30 24 20 10 5 0 Number of Respondents* ■$0-999/mo ■$1,000-1,999/mo ■$2,000-2,999/mo ■$3,000/mo or more —No answer *Of those answering that operating from home did save them money compared with operating from elsewhere Based on the responses, operating from home saves most business owners a substantial amount of money, with most respondents saying they save at least $1,000 a month. This suggests home occupations are important for supporting business enterprise, especially small and/or newer businesses that may not be able to shoulder the cost of maintaining a brick and mortar location. Section 2—Existing Requirements In this section of the survey, respondents were asked to rank their understanding of and ability to comply with a selection of the existing special use standards for home occupations, including Subcriterion (1). The purpose of this section was to establish a baseline with which to compare the proposed new concepts. The survey presented an existing requirement from the special use standards for home occupations, and then asked respondents to rank their agreement with the following statements, on a scale from 1 to 5 (1 being strongly disagree, 5 being strongly agree): • / understand what actions I would need to take for my business to comply with this standard. • Complying with this requirement is or would be a burden on my business. If the respondent felt there was a burden to their business, they were given an open response field to explain why. Respect. Trust. LU 25-0002 EXHIBIT D-2/PAGE 5 OF 74 EXHIBIT D2 Page 6 of 14 Average Level of Agreement 5 4.67 4.42 4.55 4.57 4 3 2 1.76 1.6 1.52 1.52 1 2.1 2.2 2.3 2.4 •I understand what actions I would need to take for my business to comply with this standard. •Complying with this requirement is or would be a burden on my business. 2.1 -The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (LOC 50.03.004.1.b.ii(1)) (Subcriterion 1) 2.2 - No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping, yard maintenance, or other domestic services for the dwelling where the business occurs. (LOC 50.03.004.1.b.ii(3)) (Subcriterion 3) 2.3 - No outside storage of goods or materials other than vegetation. (LOC 50.03.004.1.b.ii(4)) (Subcriterion 4) 2.4- No more than 25% of the aggregate floor area on the lot is devoted to nonresidential use, except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met. (LOC 50.03.004.1.b.ii(5)) (Subcriterion 5) Perhaps surprisingly, Subcriterion (1) performs fairly well when respondents are asked to rank their understanding of how to comply with it. This may reflect the fact that most home occupation businesses are low impact. A business that involves only a home office with no outside client visitation is generally not testing the limits of "neighborhood character" or "peaceful enjoyment of the neighborhood." As a result, even an ill-defined standard might be easy to understand for owners of lower-impact businesses. Additionally, staff notes that lower- impact businesses are less likely to have experience dealing with the ins-and-outs of applying this standard, as issues related to lack of clarity in this standard have primarily arisen during the enforcement of activity reported through the existing complaint-based system. Regardless, out Respect. Trust. LU 25-0002 EXHIBIT D-2/PAGE 6 OF 74 EXHIBIT D2 Page 7 of 14 of the four existing requirements that respondents were asked to rank, Subcriterion (1) performed the worst, which indicates this is still the weakest of the existing standards. Respondents generally ranked the existing requirements as having a low impact on their business. When asked if the existing requirements placed a burden on their business, the average answer was between 1 (strongly disagree) and 2 (disagree) for all four standards. Subcriterion (3), which bans outside employees from working on site unless they are family members who reside at the dwelling, scored as having the highest impact and also generated a fair number of comments from respondents, some of whom expressed concern that this requirement hinders their ability to grow their business while retaining the cost savings from operating at home. Section 3—Potential Concepts In this section, respondents were asked to rank their level of understanding and ability to comply with conceptual code requirements that could replace Subcriterion (1). This section was formatted the same way as Section 2, with respondents being asked to rank their agreement with the following statements, on a scale from 1 to 5 (1 being strongly disagree, 5 being strongly agree): • 1 understand what actions I would need to take for my business to comply with this standard. • Complying with this requirement is or would be a burden on my business. If the respondent felt there would be a burden to their business, they were given an open response field to explain why. Average Level of Agreement 4.61 4.54 4.54 4.59 4.62 4.51 4.43 3 1.6 1 71.6 11.811718 1 1 11 3.1 3.2 3.33. •I understand what actions I would need to take for my business to comply with this standard. •Complying with this requirement is or would be a burden on my business. Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 7 OF 74 EXHIBIT D2 Page 8 of 14 3.1—Client visits. Add new limits on the number of people permitted on site at once. For example, a regulation that only 5 clients are permitted at one time. 3.2—Size of outdoor activities. Add new limitations on the size of outdoor activities associated with a home occupation. For example, a regulation limiting the amount of square footage that home business activities can occupy outside. 3.3— Hours of outdoor activities. Add new limitations on the time of day when outdoor activities associated with a home occupation can occur. For example, a regulation that outdoor activities associated with a home occupation cannot occur between 6pm and 7am. 3.4—Amplified sound. Add new limitations on amplified sound and music. For example, a regulation that electric-powered speakers are banned in association with a home occupation. 3.5— Nonpersonal vehicles. Add new limitations on the number of nonpersonal vehicles associated with the home occupation that can be parked outside the home. For example, a regulation that only 1 nonpersonal or commercial vehicle associated with the home occupation is permitted to be parked outside the home. 3.6— Hazardous materials. Add new limitations on the hazardous materials associated with the home occupation. For example, a regulation saying that certain hazardous materials are not permitted or limited to a certain amount that can be stored on site. 3.7— Flag lots. Add new limitations on flag lots. For example, regulations that would ban outdoor activity or further limit the number of clients permitted in association with a home occupation on a flag lot. 3.8— Delivery vehicles. Add new limitations on delivery vehicles. For example, a regulation saying deliveries to the home occupation cannot occur if the delivery vehicle would be a large semi-truck. On average, each of the proposed concepts—except for one— performs better in terms of understandability than Subcriterion 1. However, since respondents ranked Subcriterion 1 as relatively easy to understand, the difference is small. In terms of the impact to the business, respondents generally perceived the proposed concepts as being about as burdensome as the existing requirements in Section 2. The biggest exception is when respondents are asked about introducing additional limitations on flag lots. This ranked as both the most difficult to understand and the most burdensome. In terms of understandability, the survey did not explain what the term "flag lot" means, which staff acknowledges as an oversight that should have been better explained in the survey. The written responses for this item indicate that at least some of the respondents did not understand what a flag lot is. With respect to the responses indicating that the flag lot concept is more of a burden, staff notes that this was the only question where respondents were given a "not applicable" option instead of simply agreeing or disagreeing, since flag lot requirements would only apply to certain properties. 106 respondents, or about 67%, chose the N/A option when asked about the level of burden for this concept. The inclusion of the N/A option was an intentional choice by staff to hear more directly from people who have flag lots about the level Respect. Trust. LU 25-0002 EXHIBIT D-2/PAGE 8 OF 74 EXHIBIT D2 Page 9 of 14 of perceived burden. Since people who would not be directly impacted could respond with N/A instead of choosing an option on the scale, the average was likely pushed up by people who would be impacted. Section 4—Feedback At the end of the survey, respondents were given an optional open form to provide general feedback about the project. About half of respondents filled out the form. Their responses ranged in tone, with some being supportive of the project overall, some expressing skepticism, and many warning the City to be careful about imposing new restrictions on businesses without carefully considering the impacts. The responses are attached to this report as part of Attachment 3. DISCUSSION Home Occupation Regulation Concepts Subcriterion (1) articulates a goal of retaining neighborhood character and peaceful enjoyment of the neighborhood by those living in close proximity to a home occupation. Staff explored several different ways of achieving this regulatory goal through requirements that are objective and measurable, which were based on existing code enforcement practices and refined by the first work session with the Planning Commission. Seven potential new code concepts were included in the survey sent to home occupation business license holders. Draft code amendments are attached as Attachment 2. 1. A limit on the number of clients who can be on site at once. During the April 1 study session, several City Councilors expressed support for the concept of limiting the number of clients who could visit the site at once. Other Councilors expressed some reservations about the impact this standard could have on businesses that might have a high number of clients but still produce low impact to the neighborhood. In the survey, respondents generally agreed that this limitation would not be a burden to their business, although some did say that a limit of five might be too low for their business (see Attachment 3). Proposed draft code language (Attachment 2): No more than five clients, including persons accompanying clients, are permitted at the dwelling where the business occurs at the same time. Staff is looking for direction from the Commission regarding the number of clients permitted at one time at a home occupation business. In the potential draft code language excerpted above, staff has proposed a limit of five clients; while this specific number of clients was initially proposed as a placeholder number for the survey, most of the survey respondents nonetheless indicated that they could comply with a five-client limitation, with some exceptions. Is there any additional information that the — Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 9 OF 74 EXHIBIT D2 Page 10 of 14 Commission would like to consider before establishing the maximum number of clients allowed to visit a home occupation business? 2. A limit on the number of nonpersonal vehicles parked on site. At the Council study session, Councilors expressed that neighborhood impacts could be limited if work and/or commercial vehicles were mostly confined to the property where the home- based occupation was located. They also expressed the importance of keeping such vehicles from clogging up on-street parking in residential neighborhoods. Feedback from Code Enforcement staff was that the most straightforward way to enforce this in practice would be to use logos or commercial markings that clearly identify a vehicle as associated with the home occupation. Proposed draft code language (Attachment 2): No more than one vehicle per home occupation business is permitted to be parked outside of the property where the business occurs. Vehicles associated with a home occupation business will be identified by the presence of visible company or commercial markings on the exterior of the vehicle. Staff is looking for direction from the Commission regarding the number of vehicles permitted to be parked off the property. In the survey, most respondents said they do not park any commercial vehicles at home, but of the ones that do, most say they have one or two. In the past, Code Enforcement has encountered outlier cases where a home occupation business has three or more nonpersonal vehicles parked at or near the home. 3. Limiting outdoor activities associated with a home occupation. The concept of an outright ban on outdoor activity was initially proposed by staff, as there is a standing internal policy to not allow outdoor activities associated with a home occupation when enforcing Subcriterion (1). When this concept was discussed with the Neighborhood Chairs Committee (NCC), staff received feedback that such a ban could be overly- restrictive for home occupations. Staff received similar feedback from the Commission when this concept was discussed at the work session on January 27. In response to this input, staff began to instead consider two distinct concepts: one that would limit outdoor home occupation business activity during certain times of the day, and one that would limit the physical size of outdoor activities associated with a home occupation. As indicated above, both of these concepts were included in the home occupation survey, and respondents generally indicated that they understood the concepts and that such limitations would not be a burden on their business. Staff also presented both of these concepts to the City Council at the study session on April 1. At this meeting, the Council directed staff to return to the initial concept of placing an outright ban on all outdoor activities associated with a home occupation Respect. Trust. LU 25-0002 EXHIBIT D-2/PAGE 10 OF 74 EXHIBIT D2 Page 11 of 14 because they are more likely to have impacts to neighbors and due to the difficulty of creating standards that can effectively limit the impacts and be enforced. Proposed draft code language (Attachment 2): Outdoor activities associated with the business are not permitted. 4. Restricting amplified sound. Respondents to the survey generally agreed restrictions on amplified sound would not be a burden to their business. The City Council's feedback was that, if possible, it would be best for the City to apply the general nuisance ordinance to home occupations rather than limiting speakers specifically for home occupations. Restricting or banning outdoor activities, limiting the number of clients, and other measures may also reduce noise levels without the need for a specific ban on amplified noise. In light of this direction from Council, staff suggests adopting language that makes it clear to home occupation applicants that noise restrictions are in place based on the existing public nuisance rules. Potential draft code language (Attachment 2): The City's public nuisance rules (LOC 34.08, LOC 34.10) apply to home occupations, and any complaints of a public nuisance related to a home occupation shall be treated the same as any other public nuisance. Though simply eliminating Subcriterion (1) from the use-specific standards for home occupations would likely result in noise complaints related to home occupations being treated like any general nuisance, staff suggests making it explicit within the use-specific standards for home occupations that the City's public nuisance rules apply to home occupations. Adopting the code language proposed above and in Attachment 2 would provide additional clarity for owners of home occupation businesses, neighbors, and the general public regarding the noise regulations that apply to home occupations. 5. Placing additional restrictions on flag lots. The initial concept of placing additional restrictions on home occupations on flag lots resulted from Code Enforcement staff's experience with home occupations in such locations. Code Enforcement staff indicated that, because flag lots have a higher likelihood to abut more properties and utilize relatively narrow shared access lanes, home occupations on flag lots can have a larger impact on the surrounding neighborhood. On the survey, respondents were asked about the idea of further limiting client visitation and outdoor activities. This idea ranked as the hardest to understand and the most difficult to comply with (although this partly reflects a selection bias, because those not living on a flag lot were allowed to choose "N/A"). Nevertheless, several respondents raised concerns over the fairness of treating flag lots differently from other properties. Staff then presented this concept to the City Council at the study session on April 1. The Council expressed concern that limiting home occupations on flag lots could result in — Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 11 OF 74 EXHIBIT D2 Page 12 of 14 disparate impacts for home occupation businesses on such lots, and conveyed that they did not want to be overly punitive towards such business owners. Based on these concerns, Council directed staff to remove the flag lot concept from consideration for the proposed draft code amendments. The proposed draft code amendments are consistent with this direction, and do not include language that would regulate home occupations located on flag lots differently than other home occupations (Attachment 2). 6. Restricting the size of delivery trucks. At the January 27 work session, the Commission discussed the concept of limiting deliveries to home occupation businesses based on the time of the delivery. Based on internal discussion with Code Enforcement staff, who felt that regulating based on time of day would be challenging and has experience with large trucks providing deliveries to home occupations while blocking streets and access to neighborhood properties, staff pivoted to regulating the size of truck instead. Staff had initially considered concepts that would limit deliveries from large trucks to a home occupation. However, preliminary survey feedback indicates that the delivery of appliances and furniture using larger trucks can be relatively routine activity and may not be out of character within a residential neighborhood. Based on this feedback, the concept was further refined to target the restriction of tractor-trailers. Such a restriction would still permit deliveries from box trucks, which are more compatible with neighborhood streets and, as survey respondents point out, are relatively common in residential neighborhoods. However, at the April 1 study session, the Council expressed skepticism that it would be practical for home occupation owners to be able to control the type of vehicle deliveries were coming from, and directed staff to remove this concept from the code amendments. The proposed draft code amendments are consistent with this direction, and do not include language that would regulate delivery trucks (Attachment 2). 7. Restricting hazardous substances. When the Planning Commission previously discussed the general concept of limiting emissions from home occupation businesses, Code Enforcement staff mentioned that it would be hard to measure such emissions (and thus hard to enforce any violations of such a standard). This concept has since evolved to more directly address the presence of hazardous substances by adding a restriction on hazardous substances to the home occupation regulations. Among peer cities, it is common to ban or restrict the use of hazardous substances. This concept would reference the definition of hazardous materials already in LOC 50.10.003.2, which in turn refers to the definition provided in state law (ORS 435.005): — Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 12 OF 74 EXHIBIT D2 Page 13 of 14 Hazardous Substances:Any substance listed or described as hazardous in ORS Chapter 453 (Hazardous Substances). "Hazardous substances"are toxic, corrosive, irritants, strong sensitizers,flammable, combustible, or generate pressure through decomposition, heat or other means. Hazardous substances or mixture of substances may cause substantial personal injury or illness during, or as a proximate result of any customary or reasonably foreseeable handling or use. In the survey, respondents generally agreed that this would not be a burden, but some expressed that they needed clarity on what constitutes a hazardous substance. The ORS definition was not provided in the survey, and it does explicitly state what kinds of substances are considered "hazardous." Potential draft code language (Attachment 2): Any substance listed or described as hazardous in ORS Chapter 453 (Hazardous Substances) is not permitted at the property where the business occurs. Potential Uses to Reclassify as other than Home Occupations In doing research and public outreach for this project, staff has identified two agricultural uses that may be more appropriate to regulate separately from other home occupations: • Farm stands are currently allowed in some nonresidential zones and are defined as a temporary or permanent structure used for the sale of fresh produce and seasonal items, including flowers, holiday trees, and wreaths. (LOC 50.10.003.2). • Wineries are not expressly defined in the code. This use typically involves rows of grape vines on a site, along with areas for serving customers wine and other food or beverages, either indoors or outside. While these uses can be appropriate in residential zones under certain circumstances, they may also produce more impacts on surrounding residential character than other types of home occupations. For instance, farm stands and wineries may take up more space outside, require later operating hours, or attract more customers than a residence or even a typical home occupation. As such, it may not be appropriate to classify these uses as home occupations. One potential way to address this issue would be to allow farm stands and wineries within certain residential zones as either an outright permitted use or on a conditional basis. Additional use-specific standards could be added to LOC 50.03.003, as necessary. (In order to minimize the impact of this potential change on existing businesses, staff recommends that any existing home-based farm stands or wineries be provided with a concurrent path to seek outright or conditional use approval along with any such code amendments.) Staff asked for direction from Council regarding whether to explore additional regulations specific to home-based farm stands and wineries as a part of the larger effort to update the — Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 13 OF 74 EXHIBIT D2 Page 14 of 14 use-specific standards for home occupations. They generally agreed that staff should continue to research this idea and present code alternatives to the Commission at a future date. REVISED PROJECT SCHEDULE To provide enough time for staff to properly research and craft code updates, the project schedule has been revised from what was originally presented to the Commission at the January 27 work session. The updated tentative schedule is below. Home PCWS CCWS PCWS PCWS PC PC CCPH Occupation #1 #2 #3 Hearing Findings Code Update Jan. 27, Apr. 1, Apr. 14, June 9, July 14, July 28, Sept. 2025 2025 2025 2025 2025 2025 16, 2025 Concepts Draft Code Hearings»» ATTACHMENTS 1. Copy of Survey sent to Home Occupation License Holders, 2/26/2025 2. Draft Code Amendments, 3/27/2025 3. Responses to Survey, 3/19/2025 4. Breakdown of Top Home Occupation Categories Respect. Excellence. Trust. Service. LU 25-0002 EXHIBIT D-2/PAGE 14 OF 74 3/19/25, 1:32 PM New Submission EXHIBIT D2 I g Home Occupation Survey I,Go/ The City of Lake Oswego has long allowed residents to operate a business out of their home, depending on the type of business activity and how the business is operated. Such businesses conducted from a residential dwelling unit are commonly referred to as home occupations. This is distinct from an employee of a business headquartered offsite who works from home. The City is currently exploring updating its zoning regulations for home occupations, as certain current standards are difficult to enforce because they use subjective language. In particular, the focus of this code update is to replace one of the standards for home occupations (LOC 50.03.004.1.b.ii), which reads: The[home occupation]use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (LOC 50.03.004.1.b.ii(1)) Though the idea may seem reasonable, in practice, concepts such as "residential character" and "peaceful enjoyment" of the neighborhood lack clarity and are not measurable.As a result, home occupation applicants, the public, and Code Enforcement staff are unsure specifically what home occupation businesses can or cannot do. The purpose of this project is to replace this standard (LOC 50.03.004.1.b.ii(1)) with new code language that distills the concepts of neighborhood character and peaceful enjoyment of the neighborhood into measurable, objective standards that provide a clear path for compliance and enforcement. This survey is intended for current and past holders of home occupation licenses in Lake Oswego. The questions in this survey will ask you about your business, how easy you find the existing regulations to understand and comply with, and whether you would be able to understand and comply with any of the proposed replacement regulations. Your feedback is invaluable in shaping updated standards, and we sincerely appreciate your time and participation! This survey should take less than 15 minutes to complete. Section 1 — Background Info These questions are intended to provide context to answers you provide in the next sections. Answering is optional. This poll is anonymous and your answers will not be used for enforcement purposes or to identify you. Answering honestly will help the City determine reasonable restrictions for home occupations by allowing us to understand existing conditions. 1.1 — Do you have a home occupation business license in Lake Oswego? Q Yes Q No Q I did in the past but not now Q I haven't had one, but I'm interested in getting one in the future LU 25-0002 ATTACHMENT 1/PAGE 1 OF 7 http ci00 o.or.us/formslf/PHOS EXHIBIT D-2/PAGE 15 OF 74 1/7 3/19/25, 1:32 PM New Submission EXHIBIT D2 1.2 —What kind of business do you operate? 1.3—Are/would there be nonpersonal vehicles associated with your business parked at your home? Yes No 1.4— Does/would operating your business from home save you money compared to operating elsewhere? Q Yes Q No n Unsure Section 2 — Existing Requirements Lake Oswego currently has a number of special use standards that apply to home occupation businesses. Answering the questions below will help the City establish a baseline for how easy the existing requirements are to understand and comply with. The selected standards below are taken directly from the use-specific standards for home occupations within the Lake Oswego Code (50.03.004.1.b.ii). RATING SCALE Strongly Disagree— Disagree— Unsure —Agree — Strongly Agree 1 2 3 4 5 2.1 —The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (LOC 50.03.004.1.b.ii(1)) I understand what actions I would need to take for my business to comply with this standard.* 1 2 3 4 5 Complying with this requirement is or would be a burden on my business.* 1 2 3 4 5 If there is or would be a burden on your business, please explain: LU 25-0002 ATTACHMENT 1/PAGE 2 OF 7 btt / wci0o.or.us/formslf/PROS EXHIBIT D-2/PAGE 16 OF 74 2/7 3/19/25, 1:32 PM New Submission EXHIBIT D2 2.2— No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping, yard maintenance, or other domestic services for the dwelling where the business occurs. (LOC 50.03.004.1.b.ii(3)) I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 2.3— No outside storage of goods or materials other than vegetation. (LOC 50.03.004.1.b.ii(4)) I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 2.4— No more than 25% of the aggregate floor area on the lot is devoted to nonresidential use, except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met. (LOC 50.03.004.1.b.ii(5)) I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 LU 25-0002 ATTACHMENT 1/PAGE 3 OF 7 httpci0onno.or.us/formslf/PHOS EXHIBIT D-2/PAGE 17 OF 74 3/7 3/19/25, 1:32 PM New Submission EXHIBIT D2 If there is or would be a burden on your business, please explain: Section 3 — Potential Replacements The City would like to replace the following language within the existing use-specific standards for home occupations: The[home occupation]use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (LOC 50.03.004.1.b.ii(1)) The above standard is vague and has proven to be difficult to enforce. The City's goal is to replace this language with new standards that capture the ideas of not altering the residential character of a neighborhood nor infringing on a neighbor's peaceful enjoyment of the neighborhood in ways that are more clear, objective, and measurable. The City is interested in your thoughts for how to replace this standard. Please provide your feedback on a few different ideas for new standards, below. Responses from this survey will be used to develop code amendments that will eventually be proposed to the Planning Commission and City Council. Please keep in mind that the questions below are intended to represent higher-level code concepts. More specific code language will be refined based on input from the public, the Planning Commission, and City Council, prior to a public hearing tentatively scheduled for May 28, 2025. 3.1 —Add new limits on the number of people permitted on site at once. For example, a regulation that only 5 clients are permitted at one time. I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 3.2—Add new limitations on the size of outdoor activities associated with a home occupation. For example, a regulation limiting the amount of square footage that home business activities can occupy outside. I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 LU 25-0002 ATTACHMENT 1/PAGE 4 OF 7 http ci00 o.or.us/formslf/PHOS EXHIBIT D-2/PAGE 18 OF 74 4/7 3/19/25, 1:32 PM New Submission EXHIBIT D2 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 3.3—Add new limitations on the time of day when outdoor activities associated with a home occupation can occur. For example, a regulation that outdoor activities associated with a home occupation cannot occur between 6pm and 7am. I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 3.4—Add new limitations on amplified sound and music. For example, a regulation that electric-powered speakers are banned in association with a home occupation. I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 3.5—Add new limitations on the number of nonpersonal vehicles associated with the home occupation that can be parked outside the home. For example, a regulation that only 1 nonpersonal or commercial vehicle associated with the home occupation is permitted to be parked outside the home. LU 25-0002 ATTACHMENT 1/PAGE 5 OF 7 http ci00 o.or.us/formslf/PHOS EXHIBIT D-2/PAGE 19 OF 74 5/7 3/19/25, 1:32 PM New Submission EXHIBIT D2 I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 3.6—Add new limitations on the hazardous materials associated with the home occupation. For example, a regulation saying that certain hazardous materials are not permitted or limited to a certain amount that can be stored on site. I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 If there is or would be a burden on your business, please explain: 3.7—Add new limitations on flag lots. For example, regulations that would ban outdoor activity or further limit the number of clients permitted in association with a home occupation on a flag lot. I understand what actions I would need to take for my business to comply with this standard.* O 1 02 03 04 05 Q NA Complying with this requirement is or would be a burden on my business.* O 1 02 03 04 05 Q NA If there is or would be a burden on your business, please explain: LU 25-0002 ATTACHMENT 1/PAGE 6 OF 7 http ci00 o.or.us/formslf/PHOS EXHIBIT D-2/PAGE 20 OF 74 6/7 3/19/25, 1:32 PM New Submission EXHIBIT D2 3.8—Add new limitations on delivery vehicles. For example, a regulation saying deliveries to the home occupation cannot occur if the delivery vehicle would be a large semi-truck. I understand what actions I would need to take for my business to comply with this standard.* 01 02 03 04 05 Complying with this requirement is or would be a burden on my business.* 01 02 03 04 05 If there is or would be a burden on your business, please explain: Section 4 — Feedback Form 4.1 — Do you have any general feedback on this project? Submit Save as Draft LU 25-0002 ATTACHMENT 1/PAGE 7 OF 7 http ci00 o.or.us/formslf/PHOS EXHIBIT D-2/PAGE 21 OF 74 7/7 EXHIBIT D2 Draft 03/27/2025 LOC 50.03.004 Accessory Structures and Uses 1. Accessory Uses a. General Standards /// b. Standards for Specific Uses i. Farm Stand. As an accessory use, farm stands are limited to one per site with a maximum size of 800 sq. ft. floor area. ii. Home Occupation.A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied withmet: {1)The use does not alter thc residential character of thc neighborhood nor infringe. Upon thc right of residents in thc vicinity to thc peaceful enjoyment of the. neighborhood. (12)A current and valid business license is maintained. (23) No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping,yard maintenance, or other domestic services for the dwelling where the business occurs. (3) No more than five clients, including persons accompanying clients, are permitted at the dwelling where the business occurs at the same time. L) No more than one vehicle per home occupation business is permitted to be parked outside of the property where the business occurs. Vehicles associated with a home occupation business will be identified by the presence of visible company or commercial markings on the exterior of the vehicle. (5) Outdoor activities associated with the business are not permitted. (64) No outside storage of goods or materials other than vegetation. (7)Any substance listed or described as hazardous in ORS Chapter 453 (Hazardous Substances) is not permitted at the property where the business occurs. (8)The City's public nuisance rules (LOC 34.08, LOC 34.10) apply to home occupations, and any complaints of a public nuisance related to a home occupation shall be treated the same as any other public nuisance. (95) No more than 25%of the aggregate floor area on the lot is devoted to nonresidential use, except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met. (106) Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited. (117) Short-term rentals shall meet the following additional standards: LU 25-0002 ATTACHMENT 2/PAGE 1 OF 2 LU 25-0002 EXHIBIT D-2/PAGE 22 OF 74 EXHIBIT D2 Draft 03/27/2025 (a)A person who owns a lot containing a short-term rental (primary or secondary dwelling unit) must maintain their primary residence on the lot.The owner is not required to be on the lot when the dwelling is rented. (b) No other commercial uses are allowed in conjunction with or accessory to a short-term rental. The short-term rental shall not be marketed for group events such as weddings, classes, or similar events,for example. /// LU 25-0002 ATTACHMENT 2/PAGE 2 OF 2 LU 25-0002 EXHIBIT D-2/PAGE 23 OF 74 EXHIBIT D2 03/19/2025 Section 1—Background Information Survey Language: These questions are intended to provide context to answers you provide in the next sections. Answering is optional.This poll is anonymous and your answers will not be used for enforcement purposes or to identify you. Answering honestly will help the City determine reasonable restrictions for home occupations by allowing us to understand existing conditions. 1.1 —Do you have a home occupation license in Lake Oswego? Do you have a home occupation license in Lake Oswego? 160 152 140 120 100 80 60 40 20 3 2 0 ■Yes ■No ■I did in the past but not now 1.2 —What kind of business do you operate? Responses: 1. 1 person (me) Manufacturer's Rep. High Tech B2B 2. 1:1 tutoring for reading and spelling, specialized for dyslexia. 3. A non profit industry trade 4. A realtor 5. A Travel Agency 6. Accounting 7. Accounting 8. Accounting& consulting 9. Adult Care Home 10. Affordable housing consulting with program compliance auditing. 11. Air BNB and counseling practice 12. Architectural firm. 13. Architecture Firm LU 25-0002 ATTACHMENT 3/PAGE 1 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 24 OF 74 EXHIBIT D2 03/19/2025 14. Art 15. Art 16. Art Conservation and Restoration services 17. Art pottery 18. Artisan (sewing) 19. Artisan business- blacksmithing 20. Attorney Office 21. Basically I do not conduct business out of my home. I have just kept the license to get some items to help non profits. No items are stored at my home. 22. Bookkeeping and accounting services 23. Bookkeeping Services 24. Boutique service for toy companies; developing soft goods for manufacturing 25. business consulting 26. Business office for Speech Language Pathology practice. Patients are seen off sight .in professional office.space. 27. Career and life coaching 28. Civil engineering 29. Climate change consulting 30. conference management company 31. Construction 32. Consulting 33. Consulting 34. Consulting 35. consulting 36. consulting 37. Consulting 38. Consulting 39. Consulting 40. Consulting 41. Consulting 42. Consulting 43. Consulting 44. Consulting and advisory work. 45. Consulting and coaching 46. Consulting and real estate investmtents. 47. Consulting business 48. consulting, all done via video appts. 49. Design 50. Development and dissemination of training software. 51. Digital marketing 52. e-commerce 53. Educational Consulting It's me on my computer doing zoom mostly and a lot of travel to clients. LU 25-0002 ATTACHMENT 3/PAGE 2 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 25 OF 74 EXHIBIT D2 03/19/2025 54. engineering consultant 55. Family home daycare 56. Film production, predominately editing 57. Financial Consulting Services 58. Firearms dealer 59. Floral design 60. Florist 61. Freelance Calligraphy& Illumination (i.e. laying gold/palladium leaf) -an art studio. 62. General contractor 63. General contrator for Residential and small commercial 64. Geological Services Consulting 65. Geology& hydrology consulting 66. Graphic and Web Design 67. Graphic design services and e-commerce-greeting cards 68. Graphic Design Studio 69. Haberdashery. Extremely small, high end hat maker.And to elaborate on the next question never has or ever will be a vehicle I r any foot traffic for that matter at my residence for business. 70. I am a freelance translator 71. I am a landscape designer I also have an onsite apt.that I rent out. 72. I am a licensed architect operating as a single member LLC 73. I am a painting teacher and I have some kids dropped off here after school and others walk from school to paint. This is my livelihood. Your question about the number of cars does not allow for any clarification, so I am writing it in here. On some days I have two extra cars in my driveway which is huge and some days there might be one car on the street. But I have LO high school kids and this church up the street congregants all across the front of our property nearly every single day but Saturday and days off from school. 74. I am a registered patent agent licensed to practice patent law before the US Patent and Trademark Office. I draft, file, and prosecute patent applications for clients that are remote. Some local, and most located around the country. 75. I am a reseller of power back up systems. I do not keep inventory, it's all done electronically. 76. I have a coaching business and a telehealth psychology business. 77. I have a very small marketing consultant business.All remote and online business. 78. I operate a design agency that is registered here in lake Oswego and has 3 employees (inlcuding myself).The other 2 employees are in Oklahoma and New York respectively. We operate 100% remotely. 79. I operate a portrait photographer business,typically outdoors and not in my home. 80. I'm a technology consultant- I help business owners find and optimize their online platforms and software they use. 81. I'm a therapist. I have an office down the street, so I have two licenses. 82. Income tax preparation services 83. Individual - parttime consultancy LU 25-0002 ATTACHMENT 3/PAGE 3 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 26 OF 74 EXHIBIT D2 03/19/2025 84. Informatics Consulting 85. interior design 86. Interior Design 87. Interior design 88. Interior Design 89. Interior Design 90. Interior design consultant 91. Interior Design services 92. investment management 93. IT consulting services 94. Jewelry design and construction of one of a kind pieces. 95. Language and location based services 96. Law office 97. Law Practice and Family Office 98. Legal editing 99. Licensed Massage Therapy. One person usually from Lake Oswego or West Linn parked in my driveway at a time. 100. Lumber Sales 101. Mail order& consulting 102. Management consulting 103. Management of rental properties, no visitors. 104. Manufacturer's Representative 105. Manufacturing and Import of Luxury Tabletop Products 106. marketing and branding agency 107. mediation services 108. Medical Expert Witness 109. Musical instrument manufacturing 110. None. I live in a large condo building and work from home as a remote employee. But I have opinions and included them below. 111. Nonprofit 112. Nutrition Consulting 113. Occasional freelance graphic design. 114. On line non profit work 115. Online religious educational services. 116. Owner and sole proprietor of one-person LLC, retired professor performing part-time statistical consulting in education policy 117. Pet sitting 118. Physical Health Care 119. Physical Therapy 120. pool service 121. private art teacher, mainly for kids 122. Private Investment management for a family owned corporation. 123. Production of turned wood products and finishes. LU 25-0002 ATTACHMENT 3/PAGE 4 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 27 OF 74 EXHIBIT D2 03/19/2025 124. Professional Life Coaching 125. Psychology alternative office. I travel the country and write reports in my home. No direct client contact in home. 126. Psychotherapy via telehealth platform. 127. Public finance consulting 128. Remote Accounting Services. 129. Residential Construction but no customers come to the door 130. Residential sub-contractor.Tile and stone installation. 131. retail beverage sales (water,juice, coffee) 132. Risk Management 133. Roofing contractor/bookkeeping office only Yard elsewhere 134. Small Business Accounting 135. Software 136. software consulting 137. Software design services 138. Software developer 139. Software engineering with internet-based sales. 140. Software safety consulting 141. Speech-language-auditory therapy 142. Telehealth psychiatric services 143. telephone coaching 144. Timing systems, software, consulting 145. Travel Agency 146. Trustee, receiver, consulting. Management of owned industrial real estate . 147. Tutoring 148. Tutoring and Translation Services 149. Video Production company 150. Virtual consulting business 151. We are a non-profit working primarily in developing nations. 152. We own an aircraft rental business. Our aircraft are located at the Aurora airport. Our home office occupies 7%of our total footprint. Nobody comes to our home. It's simply a computer with internet, a phone and a printer. We have one vehicle for business travel mostly to and from the airport. 153. We own small winery and we manage the administration/business operations out of our house 154. Website design, graphic design, branding, and marketing business 155. Winery tasting room 156. writing LU 25-0002 ATTACHMENT 3/PAGE 5 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 28 OF 74 EXHIBIT D2 03/19/2025 1.3 —Are/would there be nonpersonal vehicles associated with your business parked at home? Are/would there be nonpersonal vehicles associated with your business parked at your home? 145,92% ■Yes ■ No If so, how many? How many nonpersonal vehicles do you have parked at home? 7 6 6 5 4 4 3 1 1 ■1 ■2 ■4 or more No answer LU 25-0002 ATTACHMENT 3/PAGE 6 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 29 OF 74 EXHIBIT D2 03/19/2025 1.4 —Does/would operating your business from home save you money compared to operating elsewhere? Does/would operating your business from home save you money compared to operating elsewhere? 5,3% 8,5% • ■Yes • No • Unsure If so, could you estimate how much? How much money are you saving by operating your business from home? 60 53 50 40 33 29 30 24 20 10 5 0 Number of Respondents* ■$0-999/mr $1,000-1,999/mo •$2,000-2,999/mo $3,000/mo or more •No answer Section 2—Existing Requirements Survey Language: Lake Oswego currently has a number of special use standards that apply to home occupation businesses. Answering the questions below will help the City establish a baseline for how LU 25-0002 ATTACHMENT 3/PAGE 7 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 30 OF 74 EXHIBIT D2 03/19/2025 easy the existing requirements are to understand and comply with. The selected standards below are taken directly from the use-specific standards for home occupations within the Lake Oswego Code (50.03.004.1.b.ii). 2.1—The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (LOC 50.03.004.1.b.ii(1)) Average Level of Agreement 5 4.42 4.5 4 3.5 3 2.5 2 1.6 1.5 1 2.1 ■I understand what actions I would need to take for my business to comply with this standard ■Complying with this requirement is or would be a burden on my business Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 120 109 100 80 60 40 20 19 20 5 4 0 2.1 ■1-Strongly Disagree ■2-Disagree ■3-Unsure 4-Agree ■5-Strongly Agree LU 25-0002 ATTACHMENT 3/PAGE 8 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 31 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 107 100 80 60 40 24 18 20 8 1 0 2.1 ■1-Strongly Disagree ■2-Disagree 3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. Do I need to hide the equipment in my garage as it can be seen when garage door open. It is usually closed. 2. I am unsure as to the definition of"infringe" or"peaceful enjoyment." I work on a computer and make phone calls in my home. If I meet with a client it is either via Zoom or at a business establishment/restaurant in L.O.. I do not see how these activities would infringe upon the rights of residents in the vicinity. Still, my interpretation may be different than others. No, if I was leaf blowing as part of my profession that would be a more clear issue! 3. I basically just work at home and am self employed,there is no effect on the neighborhood. 4. I do not think my business alters the residential character of the neighborhood, nor the right of residents and their peaceful enjoyment of the neighborhood. I've never had any complaints for either of my endeavors. 5. I don't know what the standard is so it's difficult to know if it would be a burden or not. As a consultant,the only impact to my neighbors is an additional car parked in my driveway. 6. I only see 3-4 patients a day usually only 4 days a week.They park in front of my house and are only here for 1-2 hours each.They have speech, language, attention regulation and/or auditory processing challenges. Even my young patients typically do not make a lot of noise. or infringe on neighbors' well-being. 7. I operate my business from home, on my computer.Any additional legislation that I would need to comply with or documentation I would need to provide would distract from the core requirement I have wiith running my company 8. I understand that "peaceful enjoyment" refers to noise. But how much noise, how frequently, and at what times of the day is unclear. I make far less noise, less frequently, and not outside normal business hours of the whine and roar of landscaping tools, but because I am a home business someone could conceivably complain about me. LU 25-0002 ATTACHMENT 3/PAGE 9 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 32 OF 74 EXHIBIT D2 03/19/2025 9. I will answer in the opposing question, my business causes zero disruption,traffic or any burden on myself, neighbors or even the occasional deer. Still not sure why I have to pay the city for a tiny almost invisible business other than a simple city money grab! 10. If we could not operate from home, we would have significant expenses for renting or leasing, commuting, setting up new computers, office furnishings etc. All of which we have in our home already and no need to commute etc. We do not have extra vehicles parking in the neighborhood, no signs, no nothing to show or indicate our business location. So, not sure how the LO rules or rights would play out in our situation. 11. It is just me. Only me. I'm trying to make enough to cover soccer fees and the like. Please help a mama just be a mama. 12. My clientele are highly paid professionals and come in one at a time, and I'm merely parked for the duration of their massage and then leave quietly and with only friendly interactions and are most often residence of Lake Oswego. 13. My wife has terminal cancer. I work from home and care for her. 14. My work at home is entirely performed within the home. There are no exterior impacts and no need to accommodate visiting clients. All client contact is accomplished elsewhere, usually in the offices of the client. 15. My work environment consists of a cell phone, laptop and desk.That is all my business environment requires. 16. n/a 17. N/A 18. n/a 19. NA, in the 20 or so years I have had my business I have never had a customer come to my home. 20. No 21. no burden whatsoever 22. No burden. Business services are provided online; home is used for business administration purposes. 23. No effect 24. No one in my neighborhood even knows I run a business out of my home therefore it cannot have the impacts you are referring to. 25. No signage, no sales from my location. No business vehicle. 26. None. My work in no way affects the meighborhood 27. Not sure what the standard requires. 28. We have adequate off street parking and only operate 12-5 on Saturday April-October. We do Not do special events.All activity is on our back Patio with no on street presence. 29. Well, I was told by the city my business might not be allowable as a home business and I may need to close it.This was 2 years ago. As a result, I found a commercial building to rent. I now mainly receive business mail at my home address. I do occasionally work from home on the computer from home. We I contacted the city offices I was told I still needed to have a home business license in Lake Oswego. I think it is not fair to require this of me, but not to require it from people who work from home for other businesses. It seems like a punitive effort on small business or just a way to get money from me, since it would be hard to enforce for a larger business that has people working from home. I would like to see the logic and reasoning spelled out clearly, and some equitable treatment. LU 25-0002 ATTACHMENT 3/PAGE 10 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 33 OF 74 EXHIBIT D2 03/19/2025 30. Zero impact to my business. 2.2—No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping,yard maintenance, or other domestic services for the dwelling where the business occurs. (LOC 50.03.004.1.b.ii(3)) Average Level of Agreement 5 4.55 4.5 4 3.5 3 2.5 2 1.76 1.5 1 2.2 •I understand what actions I would need to take for my business to comply with this standard •Complying with this requirement is or would be a burden on my business Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 120 115 100 80 60 40 25 20 5 11 1 0 2.2 •1-Strongly Disagree •2-Disagree •3-Unsure ■4-Agree ■5-Strongly Agree LU 25-0002 ATTACHMENT 3/PAGE 11 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 34 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 106 100 80 60 40 20 16 14 8 13 0 2.2 •1-Strongly Disagree ■2-Disagree 3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. A technician(contractor) works 8-16 hours per month in the garage on timing system assembly. This would severely disrupt the business. 2. Although most of my managers work from home the majority of the time,there are times when they need to come to my home for meetings and other work. My next door neighbor also has a home based business and has employees that need to come to his home to do work. There are often 3 cars parked in front of his home and I have no problem with this being the case. In this day and age, I feel that LOC 50.03.004.1.b.ii(3) needs to be revoked. It is unrealistic and dated for this day and age. 3. By the exact letter of the law, if I employed a remote worker like another editor, it wouldn't allow them to ever come over to my house to work on something. Unclear if that means I couldn't have a client over. 4. How do I grow my business without employees? 5. I am the sole owner of my business 6. I believe a reasonable carve out could be made for a limited number of employees (1-2)who work less than 50%of the time from the house. Forbidding anyone not living at the house from ever working in the house could potentially hinder my company's collaboration and productivity. 7. I bring in co therapist at time for groups 8. I do not have any employees, however IF I was in need of hiring an employee I don't see why that would be prohibited. 9. I have an assistant helps me with my business and comes to the home office to work. 10. I have employees that work from their homes that may need assistance this is very rare, but I would not want this to be off limits. LU 25-0002 ATTACHMENT 3/PAGE 12 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 35 OF 74 EXHIBIT D2 03/19/2025 11. I have employees,they work at my workshop in West Linn, where I do most of my work. I have a home business license in Lake Oswego. Am I in violation by having employees and a home business license?Should I be required to have a home business license if I and my employees work elsewhere?What is the intent of this language? 12. I have no employees other than myself. We do use a yard maintenance service, but the service is used for personal not business reasons. 13. I may need a second person occasionally, for holidays and special event work. 14. I would have to shut my business down. I have a hybrid work situation with the two people who work for me but if I couldn't have them meet here to work at all then I am out of business. I can't afford the overhead of another location. 15. If we were to hire a bookkeeper or admin for the Creative Director,they would likely have to work between 8am-5pm a few days a week. This would impact our ability to hire for those positions/services while operating out of the home. 16. In the past, I had another calligrapher who understood my business come to help me 1x per week. She parked in my driveway.This did not disturb the neighborhood. She appeared like any normal visitor and actually helped with my mother and father who were 88-94 during that time period. Currently, my sister comes 1x per week for 3 hours, so she is a family member. I think you are going too far by saying that only family members may come to assist. My past help was excellent, knew the business and was less obvious in my driveway than the maintenance people. When people throw parties in the neighborhood they sometimes have up to 10 cars visiting. 1 or 2 cars from 1 or 2 assistants are nothing in light of this regulation. 17. It hasn't happened yet (and may never) -- but does this mean that presence of an occasional employee/subcontractor/colleague would be against the rules? 18. It is reasonable that you have visitors occasionally that assist you.There's no disruption. 19. It's not applicable to me. But hypothetically, does this mean that I could not employ any person who is doing the work somewhere else???The reality is that most of the work is conducted online. I would say this wording is unclear by saying no one other than a family member "may be employed ..." Is the intent that no employee can come physically to work at the home occupation?Again, not applicable to me at this time. 20. many home-based businesses involve family members. this is a nonsensical requirement and would very much hurt MANY of the small home-based business models 21. My kids help me load a truck and set up at art fairs. I pay them. Like I pay a babysitter. 22. My wife and I operate the business. 23. N/a 24. n/a 25. No 26. No other employees than family 27. One man show. I have Zero employees.Just me and the city feels it necessary I pay it$100 annually and for what and for why us a big???? 28. The rule should be family plus 1 non family. 29. This is an idiotic policy and would disrupt any business. 30. This limits the types of jobs that I can bid on and accept. I could take on projects that require two people to handle safely or to meet deadlines. I could be more profitable if I could hire someone else to do bookkeeping or other administrative work from my home office. 31. This seems to prohibit occasional on-site meetings if you have other remote workers working for you, or client entertaining. I have a hard time believing that an occasional at-the-home- LU 25-0002 ATTACHMENT 3/PAGE 13 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 36 OF 74 EXHIBIT D2 03/19/2025 office meeting that doesn't fill the street with too many cars would change the character of a neighborhood. A regulation like this would prohibit expansion of my business. Use of whatever parking is on site (e.g. how much room is in the driveway), plus a couple of cars on the street, for occasional appearances, should not be prohibited, any more than someone having a dinner party or christmas party at their home once a month should not be prohibited. The impact on the neighborhood is the same. 32. We previously had a home-based business in Milwaukie where we had employees that came to the home. That is not the case now, but I don't understand why a de-minimus number of employees would be a problem for Lake Oswego. It's also totally unclear whether a completely"remote" employee would violate the terms of the business license. It sounds like it would, but that makes not sense.The employee might even be in India, and it's not clear what "may be employed or otherwise work in the home occupation" means. 2.3—No outside storage of goods or materials other than vegetation. (LOC 50.03.004.1.b.ii(4)) Average Level of Agreement 5 4.67 4.5 4 3.5 3 2.5 2 1.52 1.5 1 2.3 ■I understand what actions I would need to take for my business to comply with this standard ■Complying with this requirement is or would be a burden on my business LU 25-0002 ATTACHMENT 3/PAGE 14 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 37 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 126 120 100 80 60 40 19 20 7 4 1 0 2.3 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Distribution of Answers "Complying with this requirement is or would be a burden on my business" 140 118 120 100 80 60 40 18 20 8 5 8 0 2.3 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. Are business vehicles considered a good or material? 2. Having a few boxes of things on my patio would be no different from storage for personal use. I feel like it should fall under any other city codes about safe storage. LU 25-0002 ATTACHMENT 3/PAGE 15 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 38 OF 74 EXHIBIT D2 03/19/2025 3. I do not store anything outside for my business other than a few flowers in different seasons for short periods of time before being planted in customer's gardens. 4. I don't store any material outside of my home. 5. I don't understand what this means 6. I should be able to store whatever I want on my property if it's safe and especially if it's not unsightly 7. I will clarify this in layman's terms to make sure it is clearly understood, I understand small home businesses could cause certain problems in a residential setting but I also understand there are small businesses where they don't do anything outside the home besides communication with the mailman.This type of business should NOT be lumped in with those that have employees and or are storing goods outside of the residence, have foot or vehicle traffic in and out etc... 8. N/a 9. n/a 10. No 11. No clue what this means. What if I was a private chef for the good citizens of lake Oswego? What if I used food from my garden? No one seems to be thinking this thru. 12. No impact 13. So a landscaper can clutter the yard with plants in pots but others can not use their own land for what serves them? That is discriminatory. 14. So you can have a commercial mulch pile in your front yard, but you can't store a backhoe in a fenced-in backyard where nobody can see it? This is a silly regulation. Anything business that is visible (from a public right of way, public sidewallk, or neighboring property's ground level), anything that smells (good or bad smell), or that makes noise audible outside above a whisper (besides a properly-muffled vehicle entering/leaving the property),then I would agree should not be permitted in a residential-zoned area. It's not a burden on my business, but I would strongly disagree with prohibiting my neighbors from storing business materials inside a fully-obscured fenced-in area, where the fencing is well maintained and commensurate with the neighborhood character. (e.g. not just open chain link) If they're using a noisy forklift to move those materials around much of the day, or bringing in too many delivery trucks,then there is a problem. 15. Storing my inventory on my property requires a shed and the City should have no jurisdiction over the contents of my property on my property. 16. This limits the types of equipment that I can purchase and therefore the types of jobs that I can take. Larger equipment that doesn't fit into my house or garage. 17. We aren't entirely sure what this means. What is the limit of"goods or materials"?At present, we have no idea what this means and,therefore,what it would take to comply. 2.4—No more than 25%of the aggregate floor area on the lot is devoted to nonresidential use,except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met. (LOC 50.03.004.1.b.ii(5)) LU 25-0002 ATTACHMENT 3/PAGE 16 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 39 OF 74 EXHIBIT D2 03/19/2025 Average Level of Agreement 5 4.57 4.5 4 3.5 3 2.5 2 1.52 1.5 1 2.4 •I understand what actions I would need to take for my business to comply with this standard •Complying with this requirement is or would be a burden on my business Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 120 116 100 80 60 40 25 20 10 4 2 0 2.4 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree LU 25-0002 ATTACHMENT 3/PAGE 17 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 40 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "Complying with this requirement is or would be a burden on my business" 140 120 116 100 80 60 40 20 20 9 7 6 0 2.4 •1-Strongly Disagree ■2-Disagree 3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. A burden depends on how you enforce it. If I have a home business, and my husband also has a home business, does the 25% mean in total for both businesses or 25%each? It doesn't appear that the standard provides direction for multiple separate businesses in the same home. 2. I am not sure how this applies to my art studio 3. I need more room than that. 4. I propose that the city rethinks it's defined term small business. Being a law abiding citizen I felt it necessary to comply with this new forced business licensing or risk a $500 penalty to the city. One should be able to run a legitimate small business without licensing if NO one is bothered and No one even knows it exists. 5. I think when someone owns a house, they have the right to use their house as they see fit- especially inside. My father and mother were artists here since 1983 and used their space appropriately without any complaints. People enjoy coming to see the studio. Currently, I am in their space as they recently passed away.You are overstepping here. I use a room in the lower level, plus storage (inside, in an unfinished room under a two car garage.) It sounds like you are attempting to micromanage us- I do appreciate your effort to get our input. (I have always worked out of my home and started when I had children. It was a way to help the family income plus raise my own kids instead of having someone else raise them. Plus teach various skills to your kids. 6. If you are serious about making a useful difference and contribution to society the Percentage should be up to 50%so we don't have to build such large structures just to accommodate a comfortable business operation space. 7. My office is an extra bedroom-Maybe 10X15 8. N/a LU 25-0002 ATTACHMENT 3/PAGE 18 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 41 OF 74 EXHIBIT D2 03/19/2025 9. n/a 10. No 11. No effect 12. Not Clear 13. Not really as the HOA has rules too 14. Remote workers may not be able to quantify floor area like that.You might have a second bedroom you could call your office, but you might also just work on a laptop wherever in your house.And it's not clear why that's worth regulating. I might want to film something in my kitchen, or my backyard. 15. Some apartments are only 800 square feet, 25% might be an unreasonable limit for smaller units.This is an equity issue for lower income entrepreneurs. Of course that is what I expect from the Lake Oswego city government-screw the poor apparently is the normal operating procedure. 16. Somebody can't have a workshop the same size as their house? Another silly regulation, but dependent on the specific zoning. I would expect a large country estate lot, even if inside city limits,to be allowed to have a large barn or shop that could be the size of the main house. Certain zonings, like ordinary city-block plats, I would see the potential for a problem if the business area is too large. 17. This anti-business policy will harm the city much more than it will protect 18. This is so confusing. It limits me from making enough to even be taxable because I am so afraid of this law and not understanding it. I don't claim any of my space on any taxescity thru federal. 19. This limits the size of projects that I can take on and therefore the income that I can make. 20. We would just need to understand how that 25% is calculated. Since the business operates out of a single room, do we just use the dimensions of that room and compare it to the square footage of the home?We are well under 10% based on those calculations, but if we have to calculate the ENTIRE three car garage because we have 3 computers stored in there, we'll definitely be closer to the 25%.Just need clarification on how these measurements will be determined/calculated. Section 3—Potential Concepts Survey Language:The City would like to replace the following language within the existing use-specific standards for home occupations: The [home occupation] use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (LOC 50.03.004.1.b.ii(1)) The above standard is vague and has proven to be difficult to enforce.The City's goal is to replace this language with new standards that capture the ideas of not altering the residential character of a neighborhood nor infringing on a neighbor's peaceful enjoyment of the neighborhood in ways that are more clear, objective, and measurable. The City is interested in your thoughts for how to replace this standard. Please provide your feedback on a few different ideas for new standards, below. LU 25-0002 ATTACHMENT 3/PAGE 19 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 42 OF 74 EXHIBIT D2 03/19/2025 Responses from this survey will be used to develop code amendments that will eventually be proposed to the Planning Commission and City Council. Please keep in mind that the questions below are intended to represent higher-level code concepts. More specific code language will be refined based on input from the public,the Planning Commission, and City Council, prior to a public hearing tentatively scheduled for May 28, 2025. 3.1—Add new limits on the number of people permitted on site at once. For example, a regulation that only 5 clients are permitted at one time. Average Level of Agreement 5 4.61 4.5 4 3.5 3 2.5 2 1.66 1.5 1 3.1 •I understand what actions I would need to take for my business to comply with this standard •Complying with this requirement is or would be a burden on my business Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 123 120 100 80 60 40 20 20 6 2 6 Mir 0 3.1 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree LU 25-0002 ATTACHMENT 3/PAGE 20 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 43 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 111 100 80 60 40 36 20 12 13 0 3 - 3.1 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. Again. What about my kids if they're helping me unload my work or the neighbor whose truck u borrow to drive a piece to a client's house? 2. Allowing only 5 people at once seems arbitrary and difficult to enforce, and not equally meaningful to all. 3. As an attorney,there are times when several people need to be assembled for different matters. Putting a numerical limit might prove a problem. As long as there is no infringement on neighbors peaceful use of the area,the actual numbers of people allowed on-site, is somewhat arbitrary. 4. Because my clients are kids, sometimes they come with several family members. I wonder if this regulation would allow 5 clients plus their parents, for example. There would be no more than 5 cars visiting my property at one time. 5. Client meetings for me can include multiple stakeholders with various interest in the project. One may be the "client", another may be the contractor, another may be the structural engineer and so on. Would I have to turn away my landscape architect if they arrive and happen to be the 7th person seated at the table? Limiting this seems arbitrary and hard to enforce. 6. Depends on the number adopted -- I don't conceive of having more than 2-3 clients at any one time, and very rarely at that. On the other hand, I (and many of my neighbors) have hosted occasional parties with dozens of people. LU 25-0002 ATTACHMENT 3/PAGE 21 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 44 OF 74 EXHIBIT D2 03/19/2025 7. Generally we limit tastings to 25 people. A limit of 5 would put an unreasonable burden On our business. We have never received any complaints from our neighbors. Our window of business is small. 8. I am not sure whether this would prohibit my entertaining more than 5 clients in my home at a social event.The language is not clear as to the number of people in the household would be included in that count. I believe that limiting a short meeting to 5 people is too restrictive. 9. I do not have clients visiting my office 10. I have a show four times a year for only TWO HOURS, on a weeknight and I never know how many parents are coming. I need to have these shows to satisfy my clients.A regulation limiting this would be catastrophic to me. I don't have room to have one big one. See below how that turned out. Also, I have been in business here for 18 years and I have never had ANY PROBLEM with any of the neighbors and sometimes they attend! I also cannot stay in business with only 5 kids here at a time. They are inside and not making any noise whatsoever and only four days a week. I cannot earn enough money to make the house payment with this limitation. I am putting up with cars going up and down Wembley Park Road all day long and busses and nasty honking at each other every single day, I don't think you need to bother something that is quiet and actually helping kids in the community. 11. I rarely have clients come to the home office. 12. I teach up to 10 students at a time 13. I understand this in the framework of the regular work week but what if you want to have a special event? Do you have to pull a permit to have a gathering or a party? 14. If a family came to discuss flowers for an event there could be more than 5 people. 15. If you are having 3-5 clients or personel in the house at any given time,then you need to go get commercial space. If just family, is one thing, but the comings and goings of others for strictly business reasons (exemptions for housekeeping,yard care,trades services like plumbers and such, medical home assistance etc). But as a site with traffic makes no sense in a neighborhood. 16. In my neighborhood, people have large parties at times that seem to be for networking. These are not people that have home businesses but people who work outside their houses. People socializing with coworkers or networking are problematic in our neighborhood, but not the home businesses. 17. N/a 18. N/A 19. No 20. No change to the current standard 21. Not really 22. One time a year, I am part of Lake Oswego Open Studios. People come randomly for 2 days to visit my studio. It is rare that more than 5 are here at a time, but it's a transient day when people are in and out exploring about 40-70 artists in the area.This is an exception.Typically only one or two people come at a time to my studio 1-3x per week, if that, as I ship a lot of my orders, so it's just like a friend visiting. 23. Putting a limit of 5 people that can be in a home at any given time is ridiculous.This would give the city to much power and allow for potential abuse by the city. 24. That is great LU 25-0002 ATTACHMENT 3/PAGE 22 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 45 OF 74 EXHIBIT D2 03/19/2025 25. The City is limiting people gathering at a home? This level of oversight is too much. Will you be policing people gathering for lunch? It feels like LO is stretching into a dangerous area. 26. The potential burden would be dependent on the actual number put in. 5 would be fine. 27. This is reasonable with the Air BNB business, but the therapy business I would want the capacity to have a group here for a short term session which very well may be more than 5 people short term session- not overnight. I can accept there may need to be a parking issue needing to be addressed but having limits on having them in my house in my group room feels invasive 28. Tie the regulation to available on-site parking (e.g. limiting to a couple of cars parking on the street.) Don't set a hard limit, because someone might have sufficient space in their driveway for more. Otherwise, also ban ordinary citizens' Christmas parties, because they violate the same standard. Probably tie it to frequency. Up to once a week, or up to 4 hours a week. 29. What about dinner parties and social gatherings for networking or team-building? 30. Why is five the magic number?Are you assuming that there is negative consequences due to Parking or noise?That doesn't seem logical. What are those more than five people doing that would cause disruption? 3.2—Add new limitations on the size of outdoor activities associated with a home occupation. For example,a regulation limiting the amount of square footage that home business activities can occupy outside. Average Level of Agreement 5 4.43 4.5 4 3.5 3 2.5 2 1.7 1.5 1 3.2 ■I understand what actions I would need to take for my business to comply with this standard ■Complying with this requirement is or would be a burden on my business LU 25-0002 ATTACHMENT 3/PAGE 23 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 46 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 120 111 100 80 60 40 16 20 20 7 3 0 3.2 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 105 100 80 60 38 40 17 20 7 9 0 3.2 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. Again putting limits on what a homeowner can do on their property that they own is ridiculous. If it's square footage that I own I should be able to use it. LU 25-0002 ATTACHMENT 3/PAGE 24 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 47 OF 74 EXHIBIT D2 03/19/2025 2. Again, I'm more uncomfortable with LO's proposed regulation. So much so,that I am considering moving out of the area and/or moving my business off site so I will not have to answer to your overreach. 3. another nonsensical rule that would hurt many home-based businesses. most home-based businesses are at home because of costs to compete with big corporations. if you can try to keep that in mind with every new rule that would be kind and not affect LO. 4. Apply an "is it visible" and "is it a nuisance" standard, rather than a space limitations standard. Prohibit noise (dB level @ property line is quantifiable), smells, visible from public areas or neighbors'ground level. 5. As it is I do not use outside storage of any sort, but there are no parameters given here, so 77777 6. Define outdoor activity. I don't understand what business activities would be limited...storage?autos? 7. Dependent on the number of square feet. My guess is that there would be minimal if any burden. 8. Don't understand how these parameters are established. What is the real purpose for it? 9. For me, it's not like I have anything permanently occupied outside. But if I wanted to shoot something in my backyard without being a burden in any measurable way, I wouldn't want that to bit limited. 10. Hard to know how or when this would be a problem. We often have more than five visitors at once that have nothing to do with businrss 11. I have a large outdoor area for outdoor art activities so not sure about this one 12. I have no outside activities 13. I make very large art. Sometimes in my sunny front yard. No clue what this means. It is good for our community to see other ways of doing things. This is bonkers. 14. I need one day a year for two hours at the most. That is not a major request i don't think. Let's be realistic here, a one off, not a daily nuisance sort of thing. 15. If I want to park a company vehicle in my driveway, I don't want anyone to tell me I can't park such a vehicle on my property. I am only talking about one or two vehicles that are operable. 16. It is unclear what outdoor activities are. is outdoor storage included? 17. It will be unclear what types of outdoor activites....tents? outdoor meeting space? 18. N/a 19. n/a,that sounds reasonable 20. No 21. No change to the current standard 22. Not very clear. Someone may want to have clients for a party in the garden in the summer. What kind of outdoor activities are envisioned? Is this targeted to auto repair persons or something like that? 23. So if I have a holiday party and invite clients as well as family and neighbors that is not ok? That makes no sense. 24. This is unclear. If the use is temporary(e.g. less than one day for testing systems or shipping), would this be a violation? Or is this for semi-permanent or permanent presence? 25. Vague language. 26. We only occupy 800 square feet of space on a lot Consisting of 70,000 square feet. 27. Who decides what is and isn't necessary or even a part of my business? LU 25-0002 ATTACHMENT 3/PAGE 25 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 48 OF 74 EXHIBIT D2 03/19/2025 3.3—Add new limitations on the time of day when outdoor activities associated with a home occupation can occur. For example, a regulation that outdoor activities associated with a home occupation cannot occur between 6pm and 7am. Average Level of Agreement 5 4.54 4.5 4 3.5 3 2.5 2 1.63 1.5 1 3.3 •I understand what actions I would need to take for my business to comply with this standard •Complying with this requirement is or would be a burden on my business Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 118 120 100 80 60 40 24 20 g 6 0 0 3.3 •1-Strongly Disagree •2-Disagree •3-Unsure ■4-Agree ■5-Strongly Agree LU 25-0002 ATTACHMENT 3/PAGE 26 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 49 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 111 100 80 60 40 18 20 12 10 0 6 3.3 •1-Strongly Disagree ■2-Disagree 3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. 6 p.m. seems very early to require an end. 8 p.m. more reasonable. 2. Again -overreach! I'm getting more disturbed by LO and this survey 3. Could I work on my laptop in my yard in the evenings? 4. I don't see this as an issue, but again, not enough information to comment 5. I feel like it's the light or noise that should be regulated, not time. I might want to edit on my laptop outside, with headphones,while it's still light out. 6. I think it should be later than 6pm....9:00pm is better. 7. I think the noise ordinances would cover this. 8. I usually work from 9-4 9. It should match whatever the current restrictions are for home services- landscaping, outdoor tree work, construction, etc. 10. It's best to allow flexibility for business to conduct their services. For me, it is virtual tele- health service, so I am not taking up any outdoor space or conducting any other activities. But I would not like to have limits set as a matter of principal. What if I need to answer phone calls from patients who have crisis after hour, and I happen to be walking outside when receiving a call? Does that consider an outdoor activity? 11. N/a 12. n/a,very reasonable 13. Na 14. No 15. No change to the current standard 16. see comments above LU 25-0002 ATTACHMENT 3/PAGE 27 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 50 OF 74 EXHIBIT D2 03/19/2025 17. Some people work late. As long as the current noise policies are followed,why create add'I anti-business rules? 18. There are times I need to do work outside where it's ventilated and I certainly should and could do it on my property past 6pm without issue. 19. We are only open from noon to 5 on Saturday 20. We test our timing systems during daylight and nighttime. It is a short quiet activity(no noise except walking around)that takes up the driveway. Would this not be allowed? 21. What is going on to bring something like this up? People are allowed to have weddings on their property, parties, I have to listen to illegal fireworks for at least a month every year, not sure what this is all about. N/A 22. Who are you to limit a businesses hours? Put a noise ordinance not a time. This would include no tupperware parties on the deck in the summer... that is stupid. 23. Why not have it associated to the city quiet times that are already established? I believe it's 10 PM to 8 AM. Although we hear landscapers blowing and disrupting the noise ordinance all the time before 8 AM. 24. Would an evening outdoor dinner party for clients be considered an outdoor activity associated with the business? 25. Would rather an enforceable ordinance on the noise across the lake when the guy is on a cocaine binge and doesn't turn down his music at midnight. 3.4—Add new limitations on amplified sound and music. For example,a regulation that electric- powered speakers are banned in association with a home occupation. Average Level of Agreement 5 4.54 4.5 4 3.5 3 2.5 2 1.6 1.5 1 3.4 ■I understand what actions I would need to take for my business to comply with this standard ■Complying with this requirement is or would be a burden on my business LU 25-0002 ATTACHMENT 3/PAGE 28 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 51 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 121 120 100 80 60 40 19 20 9 7 0 1 3.4 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Distribution of Answers "Complying with this requirement is or would be a burden on my business" 140 120 116 100 80 60 40 20 14 13 12 0 2 3.4 •1-Strongly Disagree •2-Disagree 3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. Again... you do not know what is needed for a business. So party entertainers can not use a microphone at a dinner party they are hired to perform at? This is too far. It is controling and discriminatory to specific businesses. LU 25-0002 ATTACHMENT 3/PAGE 29 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 52 OF 74 EXHIBIT D2 03/19/2025 2. And why not enforce this for all businesses rather than home businesses?We are often disturbed by music at excessive levels from Lake Oswego High School and, on occassion, from the church across Country Club road from us. Why make extra restrictions for home businesses as opposed to keeping a general commitment to these types of quality of life issues in place for all commercial and or non-personal situations? 3. As compared to homes without a home occupation. is it the same or different? Can a regular home with no home occupation have electric amplified speakers? Consider decibels limits inside a time restriction 4. Do you do this for people on the lake? My neighbor with pool parties? Seriously, LO this is poorly considered! 5. Does this include computer speakers for zoom meetings?! This is unreasonable and horrible. I understand having decibel limits but banning any form of electric powered speaker is a non- sequitur for 90%of businesses! 6. Has nothing to do with my business but i do use electric speakers 7. I am more bothered by gardeners using blowers than anyone is bothered by me.The noise from the blowers is distracting and disruptive. 8. I fully support almost any outside noise regulations. Please ban leaf blowers! They are an almost constant disturbance all week long and extraordinarily loud.Any amplified sound and music should also not be allowed. 9. I have a television in my office 10. I use speakers to edit my videos. Even just laptop speakers.That doesn't mean that they're huge loud party speakers that disturb my neighbors.That would be too broad a rule. 11. Is the church on Country Club up by the high school considered a business? They are blasting out our neighborhood very regularly during the summer with their vacation bible school and outdoor church services on Sundays when I'm trying to enjoy my gardening activities. Sometimes morning and night on the same day! I have called before and then someone has gone over, but the volume just comes right back up and it's there again last time I heard it and what did they do? Drop off invitations to come to it! Is that a nice workaround to audible noise so they can get away with it?That is not fair. They need the survey, as they are also a business in my opinion. 12. Is this specific to residential area businesses that require speakers? I imagine this would be mostly food-oriented, music sales or retail (at best) 13. N/a 14. n/a very reasonable and I suggest including a maximum decibal level. 15. NA, our only outdoor sound is for personal entertainment. 16. No 17. No change to the current standard 18. Not so much a burden but I have to wonder about residents who have parties with loud music all summer long, so what the difference for a business. 19. Not sure I understand this.Are there really home businesses that need to blast sound?Seems very irrelevant for 99.9% of home businesses 20. Of course you mean OUTDOOR speakers but you did not say that. Also,why would a business be restricted if a residence is not(meaning neighbors play loud music on outdoor speakers already at times)? Shouldn't that be consistent? 21. There are already noise ordinances in place. 22. There should be a standard for dB noise at the property line (decibels using a noise meter), instead of a ban on things that make noise. The above would mean a band is not allowed to LU 25-0002 ATTACHMENT 3/PAGE 30 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 53 OF 74 EXHIBIT D2 03/19/2025 practice at home. For example, the proposed limitation would make it illegal for me to use my computer speakers to play a Zoom meeting inside my in-home office, which I do every day. 23. This goes back to my point above about coinciding with the already established quiet times in the lake Owego ordinance. 24. We just have outdoor speakers which are background.The sound does not move beyond our patio area. 25. What dB levels measured outside the home? How is this different than a resident playing music in their home or yard? 26. Why not follow existing regulations wrt sound? 27. Would rather an enforceable ordinance on the noise across the lake when the guy is on a cocaine binge and doesn't turn down his music at midnight. 3.5—Add new limitations on the number of nonpersonal vehicles associated with the home occupation that can be parked outside the home. For example, a regulation that only 1 nonpersonal or commercial vehicle associated with the home occupation is permitted to be parked outside the home. Average Level of Agreement 5 4.59 4.5 4 3.5 3 2.5 2 1.61 1.5 1 3.5 ■I understand what actions I would need to take for my business to comply with this standard ■Complying with this requirement is or would be a burden on my business LU 25-0002 ATTACHMENT 3/PAGE 31 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 54 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 122 120 100 80 60 40 21 20 7 5 2 0 3.5 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 112 100 80 60 40 20 20 11 11 3 3.5 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. Counting the number of work trucks parked at any one time exceeds this rule NOW. 2. Depends on the time limit for parking, customer parking for no longer than 60 minutes would not create a burden for me. 3. Don't have any in the first place. LU 25-0002 ATTACHMENT 3/PAGE 32 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 55 OF 74 EXHIBIT D2 03/19/2025 4. Generally we have three to five cars at a time parked off the street.Tastings last 1 to 1 1/2 hours So we have varied cars until closing. 5. I have an employee that parks in the driveway but every so often, I may have my associates in for a meeting. Banning the opportunity to have my associates attend a monthly meeting at my home office would be a huge burden. 6. I have not seen the home businesses having commercial vehicles, but I have seen commercial vehicles from employees who bring their employers vehicles home parked in neighborhood that are not from people with home businesses. 7. I have one car in my garage 8. I not have clients come to my Home Occupation, but this proposed rule seem incongruent to allowing 5 clients at a time. Do they arrive all in one car like a "clown car." How would that work? 9. If someone is parking 6 well-maintained vehicles in a long home-office driveway, and not obstructing the sidewalk, why would it matter? 10. Is there a central parking area in Lake Oswego that clients could park and walk to my location? 11. is this per home business?Some families have more than one. 12. Just drive around the lake and you will see plenty of service vehicles parked. 13. Limiting by number sounds arbitrary and hard to enforce. By outside the home you mean on street public parking, or does it include the property's driveway and/or parking lot. 14. N/a 15. No 16. No change to the current standard 17. No clue how to do this so no clue how it would impact me. 18. Not always easy to regulate what people own. 19. Not sure if this regulation would cause issues with the personal parties or events that attract more than the 1 non-personal vehicle allowed for business purposes. Can imagine persons "gaming"this regulation. 20. One seems fair 21. Parents are parked briefly in my circular driveway for pick-up, not impacting neighbors. 22. That's ridiculous. If there's Parking available,why should it matter? 23. There can be an occasion that one client is early and might be parked shortly while the other client is exiting. 24. There has to be a place for employees to park. How are their cars any different than kids' cars, contractors vehicles for repairs and remodels, nanny's and so forth. If there is to be a limit it should be reasonable and 1 employee car is not reasonable. 25. This is not applicable to me and my business. However,this would seem to limit severely a family with 2 adults who each might have their own business needs.Ask is there an implicit assumption that the wife must go along with the husband's business? If she is a plumber and he is an electrician, can they not each have their own vehicle?? 26. This opens weird doors to what if those vehicles are stopping in for a few hours not actually there on the regular? 27. What does "parked outside the home" mean? 28. What is a "non-personal vehicle? e.g. If a client arrives in their own car, is that "non-personal" because it belongs to someone else? LU 25-0002 ATTACHMENT 3/PAGE 33 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 56 OF 74 EXHIBIT D2 03/19/2025 29. Would not be a burden, but I think "commercial" vehicles should be required to be parked inside garages. For example, vans with ladders, landscape trailers, etc. should not be allowed in residential neighborhoods if they cannot be concealed from view from public right-of-ways. 3.6—Add new limitations on the hazardous materials associated with the home occupation. For example, a regulation saying that certain hazardous materials are not permitted or limited to a certain amount that can be stored on site. Average Level of Agreement 4.62 4.7 4 3.5 3 2.5 2 1.48 1.5 1 3.6 ■I understand what actions I would need to take for my business to comply with this standard ■Complying with this requirement is or would be a burden on my business LU 25-0002 ATTACHMENT 3/PAGE 34 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 57 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 122 120 100 80 60 40 21 20 7 4 3 0 3.6 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Distribution of Answers "Complying with this requirement is or would be a burden on my business" 140 121 120 100 80 60 40 20 14 11 4 0 3.6 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. "Certain" hazardous materials?Which ones?This should be spelled out. For example, fertilizers, chemicals, etc. should not be stored outside where neighborhood children have access. Additionally, is flammable materials (gas containers for landscapers, turpentine for LU 25-0002 ATTACHMENT 3/PAGE 35 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 58 OF 74 EXHIBIT D2 03/19/2025 painters, etc.) should not be allowed to be accessible by neighbors, and should probably be approved by the Fire Marshall. 2. Depends on the definition and amounts of hazardous materials, I currently store firearms ammunition in a gun safe. 3. Depends on what hazardous materials. Paint?That would be a burden. 4. Don't have any 5. I do not use hazardous materials. 6. I don't use hazardous materials. Our kitchen sinks cleaner and cleaning solutions at grocery stores are more hazardous than paint thinner. So. Uhm. Maybe let's ban certain cleaners being sold within city limits. 7. I have no hazardous materials- Not even a cigarette 8. It depends on what is deemed hazardous. materials that would naturally be used in a home environment might need to be limited but not banned in a home with a home business. 9. n/a 10. N/a 11. No 12. No change to the current standard 13. No haz stuff used 14. Not a burden but important to understand what materials, in what quantity, and how they should be stored. I use several art materials in small quantities,that are flammable when improperly stored. I comply with the instruction and safety recommendations for each product e.g. spray adhesive, spray fixatives, paint, etc. 15. Printer toner is a hazardous material, rubbing alcohol you buy at Safeway to clean printer bits, is a hazardous material, cleaning products (home use and office use) are hazardous material. You'll need to define what you mean and again it should be reasonable. 16. Seems fair, BUT who determines hazardous? By what standard? I have 501b of glitter right now.... is that a hazard? To whom?And why? Pandora's box without clear definition of the topic. 17. seems unnecessary and a violation of homeowner rights- meaning if they were storing a bunch of hazmats for their personal use then it would be ok so not sure how this is different other than to butt-in on how people earn income in this current economy. 18. Some hazardous materials, similar to those used in many households, are needed for me to successfully carry out work. It is not clear if this means all hazardous materials, what is on the list, and the amount that would be allowed 19. This is an excellent idea. 20. This is very unclear. What hazardous materials are we talking about? Is this something that any homeowner can buy already and keep/use at home such as paint and paint related chemicals,gasoline and their derivatives, etc.? There should not be more restrictions on a business than a residence would have. 21. who's going to enforce that?And what do you define as hazardous? cleaning products can be hazardous. 22. You would have a hard time listing all hazardous materials and quantities...and would likely end up have stricter standards for a home with a business in it than a home without a business.Again, keep it equitable and consistent regardless of home occupation or not. LU 25-0002 ATTACHMENT 3/PAGE 36 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 59 OF 74 EXHIBIT D2 03/19/2025 3.7—Add new limitations on flag lots. For example, regulations that would ban outdoor activity or further limit the number of clients permitted in association with a home occupation on a flag lot. Average Level of Agreement 4.17 2.47 2.5 2 1.5 1 3.7 •I understand what actions I would need to take for my business to comply with this standard •Complying with this requirement is or would be a burden on my business Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 100 90 87 80 70 60 50 43 40 30 20 11 9 10 6 0 1 _ 3.7 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree •N/A LU 25-0002 ATTACHMENT 3/PAGE 37 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 60 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 106 100 80 60 40 20 20 8 11 9 0 3 3.7 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree •N/A Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. Any change should be grandfathered 2. I do not own a flag lot 3. I don't know what a flag lot is. 4. I don't see why flag lots should be treated differently than other houses 5. n/a 6. N/a 7. No 8. No change to the current standard 9. No idea again. And what about all those flag lots on the edge of incorporated river grove? Again low common sense. 10. Not living on a flaglot 11. not sure what it is asking 12. That is BS. A lot is a lot. Discrimination 100% 13. There is no reason to treat a home on a flag lot differently than a lot not on a flag lot. 14. What is a flag lot? 15. What is a flag lot? 16. why flag lots? 17. Why would a flag lot be any different than other lots? If anything,the business is less visible to the public on a flag lot. 18. Why? I do not understand what the reason for this is. LU 25-0002 ATTACHMENT 3/PAGE 38 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 61 OF 74 EXHIBIT D2 03/19/2025 3.8—Add new limitations on delivery vehicles. For example, a regulation saying deliveries to the home occupation cannot occur if the delivery vehicle would be a large semi-truck. Average Level of Agreement 5 4.51 4.5 4 3.5 3 2.5 2 1.68 1.5 1 3.8 •I understand what actions I would need to take for my business to comply with this standard •Complying with this requirement is or would be a burden on my business Distribution of Answers "I understand what actions I would need to take for my business to comply with this standard" 140 117 120 100 80 60 40 21 20 8 9 0 2 3.8 •1-Strongly Disagree •2-Disagree •3-Unsure 4-Agree ■5-Strongly Agree LU 25-0002 ATTACHMENT 3/PAGE 39 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 62 OF 74 EXHIBIT D2 03/19/2025 Distribution of Answers "Complying with this requirement is or would be a burden on my business" 120 110 100 80 60 40 20 20 13 11 0 4 3.8 •1-Strongly Disagree ■2-Disagree 3-Unsure 4-Agree ■5-Strongly Agree Open Feedback Form: If there is or would be a burden on your business, please explain: Responses: 1. And why allow moving trucks, box trucks, and Amazon/UPS/FedEX or tree removal trucks in this case?Access to streets makes a large semi-trucks impractical for many homes, and if there is access why restrict it? 2. As a consulting company,this is not a concern of mine. However, a semi-truck making occasional deliveries, say once a month, as long as it doesn't block the road, should not be a problem. 3. furniture deliveries on rare occasions and appliances for personal and business at times are by this type of truck 4. I borrow my neighbors truck to deliver to my clients. No clue what you're trying to do here. 5. I do not have deliveries made to my home business 6. I do not know what a semi truck is. So if I buy a desk that comes in on a "semi-truck, that is not ok? Or a new washing machine that will serve my home but also my business that is not ok? That makes no sense. 7. I get many large deliveries. It takes 15min. Many people move with semi-trucks. Same thing. Stop being controling. Businesses do not control what vehicle brings the items they need. BTW all major equipment is in a semi at sometime or another. My new washer was just delivered by semi... it was for the business. 8. I have not needed this so far, but it might be a limitation and I would see it as an infrequent need. Perhaps there can be a limitation on the number of times certain types of vehicles are LU 25-0002 ATTACHMENT 3/PAGE 40 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 63 OF 74 EXHIBIT D2 03/19/2025 allowed. I don't necessarily have control over what type of vehicle a delivery company is using. 9. I live on a cul-de-sac. We (meaning the neighborhood) have had semis show up. As far as I remember these have been moving vans... they like it a lot less than we do. On the rare cases I get a delivery, I specify a sort truck... IMHO, this is self limiting in my case. 10. I receive a UPS package once every two months 11. If I need to order a new desk for my office and have it delivered?! 12. If it means that I can't have a mattress delivered there is a problem. Mattress company's and similar companies use big trucks to deliver. Bark dust,garden compost and furniture truck's are usually large also.The word "occasional" deliveries might be more appropriate. 13. Just like when somebody moves and needs a larger truck, which is more disruptive than a delivery vehicle. How is that monitored? 14. Large semi-truck should be further defined. Is this a tractor trailer rig?What is "large"? Specific examples would be helpful. 15. Limitations on frequency, rather than an outright ban, would make more sense. I don't see why a once-a-week semi-truck delivery is unreasonable. I do see why a daily semi truck on a residential street is a nuisance. 16. N/a 17. No 18. No change to the current standard 19. Not a problem 20. Not an issue for my business 21. Possibly but I don't know what is meant by a large semi-truck vs a panel truck or small semi- truck. 22. Semi trucks often deliver residential furniture or home renovation items.This makes no sense. It would not affect me, but I don't see many semi trucks making deliveries around LO residential areas regularly. 23. Some times you don't know what kind of truck the delivery company is using.This is not up to us to decide. Not that it happens on the regular but it has happened. 24. Suppose I order a new desk. I cannot control what type of vehicle the transport company chosen to deliver the desk to me. Seems like this needs to be determined on a street-by-street basis and not cast as a blanket regulation for home businesses. 25. That sounds too restrictive and unclear. Suppose the business is having furniture delivered? 26. The only thing is that you might not know what size of truck will be used to make a delivery. You may order a piece of furniture like a desk, and it shows up in a big truck. 27. there are so many home deliveries these days, with a variety of trucks, it would be hard to enforce a home occupation delivery as distinct from a home delivery. Should probably include routine deliveries requiring a semi-truck would be banned. 28. This same issue is relevant to personal deliveries. I think what you are trying to limit is the frequency of these deliveries, so why not be more specific? 29. Would love to see limitations on the number of deliveries per day, on sustainability grounds as much as neighborhood livability reasons. However, not sure how such a regulation would be enforced. 30. Would really need to clarify something like this so that people aren't harassed for furniture/appliances/other home deliveries. LU 25-0002 ATTACHMENT 3/PAGE 41 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 64 OF 74 EXHIBIT D2 03/19/2025 Section 4—Feedback Form Survey Language: Do you have any general feedback on this project? Feedback Form - Responded 41, ■Yes No Responses 1. A good idea to get more clarification with the work from home concept that many do now. But if someone is having clients, employees etc., come in and out daily, or having goods delivered for resale via on line sales, is a bit much for keeping a neighborhood culture of being a neighborhood, If those actions are happening then best be done only in commercial zoned areas. But if the business is more just a one or two person family business with no real impact outside the four walls of the residence, then that should be ok(unless you are running a drug cartel or phone scam). 2. All I know about is what I do to make a living here at our house. I have been in business for 18 years here and have not had one iota of a problem. There are more N/A categories on your survey and they are the ones I didn't answer. I have had shows down at the Lakewood Center and that turned into a joke. They did not have the room clean,they were always harassing us to get out of the building because they had a show, but they booked us anyway, and were very unorganized with payments, reservations,you name it so I came back to our house so I could control the specifics and have a nice product to satisfy my clients. I have always kept my business quiet and professional without trying to harm anyone's enjoyment of their property. LU 25-0002 ATTACHMENT 3/PAGE 42 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 65 OF 74 EXHIBIT D2 03/19/2025 Sincerely, Kirsten Vollan 3. All of my work takes place inside. I do nothing outside, so I'm more concerned about someone trying to regulate what we do inside.This is supposedly a free country.This house is owned by an individual not by the city.That said, I think that you would find my business does not disturb the neighborhood at all. I use FedEx/UPS/USPS like anybody else and typically have no one in my studio. It's a low key art studio with basically one person working (me) with 3 hours of assistance per week by 1 person. I do understand if you are having trouble with people who are disturbing others and working outside. I will say,there is a house at the end of Carman Drive by 1-5 that looks like it is piling up junk outside the home and I'm really surprised in Lake Oswego that that is going on. It is currently looking like a garbage dump....so with that in mind,yes, some regulations to respect others around them, need to be in place. 4. As a business holder in Lake Oswego we never had any traffic or noise in our neighborhood and highly respect our community 5. As an individual owning a consultancy with me as the only employee, working off of a computer, with no identifiable work vehicles, it is hard for me to understand why I would need to register my business/ be required to obtain a City of Lake Oswego business lic. at all. Especially when I consider the types of questions being asked in this survey. It is my impression that the objective of the this survey is to manage small businesses that may have an impact on their neighborhood or community. 6. As long as the home business is not impacting the neighbors and all vehicles are properly and legally parked,there should be no limitation to one or two employees working within a home- occupied business. Noise considerations should be regulated in regards to a home business creating noise outside of the home. 7. Changes seem like a good idea. 8. Don't get stupid. Some things make sense. Over control is not helping small businesses, which is what you are targeting here. Lake Oswego has done a poor job in building spaces for more businesses downtown.They allow too many condos on land that should be used for commerce. 9. good idea for project....just to be clear I conduct mediations by zoom....business has zero impact on anyone else.... 10. Hours to operate should be expanded. 6 pm is too early. Restricting deliveries by size of truck seems excessive. If the truck fits the street it should be able to make deliveries. 11. I actually agree that home business protocol should be looked at as there are a few businesses in my neighborhood that have multiple vehicles parked on the street and in yards. 12. I agree that some regulation is needed, and the current wording is vague and could use more definition, but this feels like a ploy to restrict and discourage home businesses. I'm going to guess that women and moms run most home businesses. I don't like that it needs to be mentioned, but here we are. Limiting what kind of truck can deliver items to your driveway, when often we have no control or knowledge of the type of delivery truck that is coming, feels very unnecessary. I don't think this is a frequent occurrence. Small, women-owned businesses contribute to the local economy, and I kindly ask you to please consider that. LU 25-0002 ATTACHMENT 3/PAGE 43 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 66 OF 74 EXHIBIT D2 03/19/2025 13. I am absolutely in favor of a home based business but such business should never impact the lives of the neighbors or change the overall atmosphere and general feeling of the neighborhood. 14. I am assuming that there is a difference between a home "office" and an active "business". I think this needs further definition to distinguish between the two. Different activities occur and different impacts result. Perhaps another distinction needs to be considered. 15. I am glad to see these regulations. 16. I appreciate the effort to clarify the rules in this regard. I can imagine some kinds of home businesses that I might find annoying in terms of traffic, noise, etc. (none in my nabe, so far), so I recognize the need for regulation. 17. I appreciate the effort to maintain residential neighborhoods for predominantly family and neighbor-oriented activities. 18. I feel the need for additional income for many who need to work from home is critical in this economy and if the city puts too many restrictions on this would make matters worse. 19. I have no clients coming to my house. All my work is done through my computer. 20. I hope I answered your question correctly. I agree to comply and in complying with the rules it would not be a burden to my business operations. I simply sit in one room, using one computer and remote into customer computer and work remote on data entry for general accounting purpose. I am not a CPA. I do not have clients visit me at my home/office unless they are dropping off paperwork on occasion. I meet my clients either at their office or restaurant for meetings. 21. I included comments in the explain boxes above.Thank you 22. I live in a Condominium. I work online from my home office, that consists of a computer desk and book shelves. I do not receive clients, do not receive heavy packages for my work. 23. I really don't think commercial vehicles such as vans,trailers, delivery vehicles etc. are appropriate in residential neighborhoods unless they have mufflers and are concealed from view when parked. 24. I strongly support minimizing the activities,vehicles and noise associated with home businesses 25. I think a lot of the negative neighborhood feedback is due to people expecting cars to fill the curbs. Don't limit customers, limit car counts. People should be incentivized to arrive via biking or walking! What about a commercial vehicle annual parking pass? Delivery parking pass? What if the home-business could apply to change curb usage in their frontage from free public parking to a parklet program? Free curb parking is the worst possible economic use for public RoW, let's make it something nicer than just more car storage! Mike First Addition mike@perham.net 26. I think it is a good idea and should be outlined with specific requirements to protect the neighborhood. 27. I think it's great you're clarifying! I thought I was probably not going to be in the wrong, since I don't bother my neighbors-- but it is nice for the law to be more specific--thank you. LU 25-0002 ATTACHMENT 3/PAGE 44 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 67 OF 74 EXHIBIT D2 03/19/2025 28. I think we're reaching for too many direct bans just because they are easier to measure, instead of common sense. Frequency of an obtrusive activity is generally why a home business becomes a problem. Neighbors will usually ignore the activity, if it only happens occasionally. Strongly consider fewer outright bans on activities or absolute limits on the activity itself. Instead, establish the limit with a frequency. X cannot occur more than Y times a month. If a neighbor has problems with it, let them take photos every time it occurs to prove it. Presence of hazardous materials, if a primary supply for the business, is a potentially bigger issue, because small operators are much less likely to protect against spills or releases, and prevent environmental contamination of their lot. (This is needed to protect the next person who purchases the residential property.) But, it still needs to allow someone who has,for example, a house cleaning business to be able to store their supplies. Banning all hazardous materials would essentially ban vehicles (gas& motor oil), cleaning supplies, gardeners, and other types of businesses. Small quantities should still be allowed, but stored enclosed and not visible from public areas or neighbors' properties. 29. I think while it makes sense to clarify the rules, more specific rules could easily be abused, especially when they don't make sense for the business type. It may make sense to differentiate by type of business (i.e, teaching a dance class in a yard vs working on a computer for outdoor restriction times) and it's important to make the rules reasonable so they can't be used for pedantic harassment. It seems like the current rules are reasonable as they cover a broad range of business types and could be addressed with mediation to find solutions when there are conflicts. 30. I totally understand the desire to make the code more specific. But for my very low impact business, mostly just working at a desk, many of these requirements would technically affect me even though they wouldn't have measurable impacts on my neighbors, or differ from what people do personally. I would focus on hazardous materials, loud noise levels, number of people, number of cars. Normal city codes might cover the majority of impact a home business could have. I'd really hope it isn't quantified too rigidly that doesn't respect that home workers use their homes dynamically, working in different rooms on different days, doing something occasionally, and not having it add up to a burden. 31. I understand there is a difference between a home-based business and people working from home who are employed by a company that is not themselves and that the regulation of the latter group is even more difficult. However, I don't understand why there are no restrictions on the types of activities they can carry out from home. It seems like the limitations that are being considered should apply to anyone doing work from home.This is a limitation to entrepreneurship and small businesses. 32. I would like to speak to any/all committee members regarding this regulation. 33. I would love to know why LO wants these new rules- are there a bunch of businesses that are affecting their neighbors lives? if so I truly would love more information. if this is just a new idea (say new administration or what have you) then I challenge you to reconsider. As you create each new rule, if you could truly remember that home-based businesses are most likely LOCAL businesses-not only to Oregon, but to LO specifically. Knowing that, why would you try to eff with them? I am happy to participate or assist in further conversation. 34. If it were a homeowners association the fine print would have been read before the contract was signed. Since the building that houses the business is already in place the current LU 25-0002 ATTACHMENT 3/PAGE 45 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 68 OF 74 EXHIBIT D2 03/19/2025 language appears to work well.This survey has not shown the complaints from neighbors that have been affected. Without that history I'm comfortable with the language that exists. 35. If you want to the keep the peaceful enjoyment of the neighborhood I have no problem with home based businesses running in my neighborhood or cars parked outside of homes.The number one thing that disrupts my peaceful enjoyment of the neighborhood is the incessant gas leaf blowers. They smell terrible, are terrible for the environment and the noise pollution is infuriating. Please put a BAN on all gas leaf blowers in Lake Oswego. That will help me with my work in Lake Oswego more than anything else. 36. I'm sure there are a lot like me. To see customers I go to them, otherwise it's phone and email. All I really need is an address (PO box) which I could do almost anyplace. As a PS, I am 72 and close to pulling the plug. Please don't get too crazy. 37. in general,these changes would have no impact on my business. I do almost all of my business online or by phone and rarely see clients in my home office. When I do meet with clients on site, our meetings are generally less than one hour, during which there is a single car either parked in my driveway or on the street. 38. In my experience,the city often creates regulations or codes that are disadvantageous only to some residents- usually small businesses,who are also home owners.The city does not enforce general code issues-for example, overgrown vegatation blocking the line of site and too tall at a corner of the street-and yet seeks to constrain home businesses. And then, many home businesses are simply office work...why should a resident who works for themselves be treated different than a resident who works for a law firm or for Nike or another large businesses in the eyes of the city?The self employed resident likely spends more money and contributes more to the local economy as a result of their business than the person who works from home for another business. I would like to see people treated fairly and equally. 39. Just to reiterate the city has found that they have been losing out on a pot of gold by not requiring small home run businesses to pay to be licensed and I get it, BUT the city needs to understand there are smaller businesses that cause zero negative impact on the community or neighborhoods that realistically should be exempt from this money grab.Although the I do believe it is reasonable to modify and create new laws around these small businesses run out of residences.There clear difference between the two and I don't see anybody talking about that. I certainly shouldn't have to pay the city to run my tiny business but because it was written s000000 vaguely I couldn't risk the fine and paid the fee! Shame on you Lake Oswego! I want my$100 back 40. Lake Oswego needs regulations for noise. What went on with the pickleball noise issues posed huge disturbances to the health and well being of residents. I suggest this be addressed globally and not just in terms of tiny businesses operating in homes. Limiting the number of clients visiting a home business seems directly related to the amount of neighborhood disturbance. 41. Many people work from home now. My business has no effect whatsoever on my neighbors. Construction noise at all hours is a far bigger irritant than any home business I can think of. 42. Most of these regulations would not impact my business. But they might present a large burden on others. Perhaps allow business owners an opportunity to apply for exceptions to heightened regulations, and allow plenty of time for owners to make adjustments if necessary. 43. My business is small, mostly working on the weekends. I think there needs to be some delineation between full-time business and those that do their work intermittently. 44. My business is very quiet and has a singular person at a time enter and exit. LU 25-0002 ATTACHMENT 3/PAGE 46 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 69 OF 74 EXHIBIT D2 03/19/2025 45. My business only involves me, and all of my work involves my home office computer and internet access. Basically, I read reports on-line and then write my own summary reports online. I don't have clients that visit my house. 46. My home business reduces traffic in the neighborhood as I do not have to travel back and forth to work. I feel that any regulations that apply to home businesses should also apply to people who telework or to people who invite coworkers to their houses or have dinners with guests for networking. I do not understand how a plummer who works for a company and brings his work van home from his employer can have a different regulation for a business vehicle than a self-employed plummer who has his van parked at his house. I don't think there is a clear distinction on the impact on a neighborhood between what is a home business, someone teleworking from their home, and corporate people who use their homes to have guests over to network, but the regulations seem to be different. 47. New codes should anticipate the effects of increases in housing density that middle housing will have in residential areas as well as the state and city mandated elimination of parking for new homes. 48. no 49. No burden 50. No change to the current standard 51. None for my business; my children have attended in-home childcare facilities nearby and I know pick up &drop off times mean there are up to 10-12 vehicles in front of the home for a 15 minute period. I would hope allowances would be made for that kind of traffic 52. None for now! 53. None of the existing rules or proposed changes have any effect on the business. 54. None of these updates would affect me as I have an online coaching business with no disruption to the neighborhood but I can see how businesses with a lot of noise, deliveries, and materials, and people would be. 55. Not at this time. 56. Our concerns are only in regards to how new regulations would impact our ability to operate our business.At present, nothing looks to change with this, however we'll need more information on how areas are calculated and things like "what happens if the City re- designates/re-classifies my property based on these new regulations?". 57. Please avoid overregulating.As it is LO does nothing extra for my business that they already do for a residence except charge me $65 once a year 58. Please consider inclusiveness, accessibility(hard of hearing might rely on speakers), low income families and equity when passing laws. It is clear that the current laws have not considered these and open the city up to significant liability for legal action as a result of unfair laws. Will not be seen kindly in Oregon courts... 59. Please do not attempt to close my business. I am almost 80 years old and care for my wife. My work entails sending and receiving emails and phone conversations with customers. I am not sure if anyone in our neighborhood even knows I operate a business. 60. Please make alternatives with any further limits vs leaving a new regulation without realistic plans to comply with it LU 25-0002 ATTACHMENT 3/PAGE 47 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 70 OF 74 EXHIBIT D2 03/19/2025 61. Questions should include-do customers or clients come to this location? My answer is no. Question 2. Is merchandise shipped to or.from this location? How much how often ? 62. See comment above re employees, on-site or off-site. 63. Seems like a good start to update 64. Some of these questions are challenging to understand. My business does not detract in any way from neighbors' enjoyment of the area according to feedback I receive from them. 65. Thanks for asking. 66. The wording for these questions is awful. Many of the questions should be answered with a yes or no response instead of agree or disagree. So confusing and a waste of my time. I had enough at 3.1. 67. There could be a question about an entirely on-line business that could eliminate many of these questions.That's what I have. I bet many others do as well. 68. These anti-business changes are poorly written and are mostly already covered by existing neighborhood rules. Cut the budget for the departments that invent these horrible wastes of time, money and energy 69. These are interesting considerations. I am basically retired, so these parameters do not pertain to me. I basically help others/organizations (non profits) from time to time with flowers or ordering some products- no resale. I understand that many people work from home, however I imagine most do not create noise,traffic nor burdens. I keep my license as a means of supporting the City for all it gives us in return. I just never cancelled my license. 70. These items would not effect any part of my business or how I do my job or run my company. 71. This business does not require any changes to meet any new standards that may be enforced in the future. 72. We work online primarily. 73. Why are changes needed.?The present regulations seem to work well. We should not put an added burden on home based businesses. Who would enforce any new regulations?What is the history of complaints prompting a change? 74. With the rising cost of commercial property having my business at home has been a lifesaver. I wish for my business to be unaffected by changes in zoning. 75. Works for us! 76. You have to help people. Not make everything homogenous.There are better things and better ways than infringing on small micro businesses in lake o 77. Your examples and definitions are unclear. Form requires judgement on questions I don't understand, so I just used the extreme responses. LU 25-0002 ATTACHMENT 3/PAGE 48 OF 48 LU 25-0002 EXHIBIT D-2/PAGE 71 OF 74 EXHIBIT D2 TOP HOME OCCUPATION TYPES Category Total Number North American Number Industry Classification System (NAICS) Code Interior designers 37 Interior design services 29 Interior designer 1 services Interior decoration 3 consulting services Interior design 4 consulting services Construction- 31 Housing,single-family, 15 related businesses construction general contractors, Home builders(for-sale) 1 Home improvement 3 (e.g.adding on, remodeling renovating) Home improvement 1 (e.g., adding on, remodeling, renovating),single- family housing,general contractors Home renovation 1 Residential 1 construction,single- family,general contractors Addition,alteration and 1 renovation,single- family housing,general contractors Roofing contractors 1 Deck construction, 1 residential-type Handyman construction 1 service, residential building Construction 2 management, commercial and institutional building Construction (General) 3 LU 25-0002 ATTACHMENT 4/PAGE 1 OF 3 LU 25-0002 EXHIBIT D-2/PAGE 72 OF 74 EXHIBIT D2 Administrative 30 Administrative 24 management management consulting services services Administrative 6 management services Professional, 24 Professional,scientific, 24 scientific, and and technical services technical services (general) Computer or 23 Computer peripheral 1 software services equipment merchant wholesalers Computer program or 3 software development, custom Computer repair and 2 maintenance services, without retailing new computers Computer software 6 consulting services or consultants Computer software 1 programming services, custom Computer software 1 support services, custom Computer systems 1 integration design consulting services Games,computer 6 software, mass reproducing Systems integration 1 design consulting services,computer Software publishers 1 Business 20 Business management 19 management consulting services services Business management 1 services Educational 19 Educational Services 12 services (General) Educational consultants 7 Real estate services 17 Appraisal services, real 2 estate Property managing, 1 residential real estate Real Estate and Rental 6 and Leasing(General) LU 25-0002 ATTACHMENT 4/PAGE 2 OF 3 LU 25-0002 EXHIBIT D-2/PAGE 73 OF 74 EXHIBIT D2 Real estate asset 6 management services (except property management) Real estate brokers' 1 offices Real estate consultants' 1 (except agents, appraisers)offices Mental health 16 Clinical psychologists' 1 services offices(e.g.,centers, clinics) MDs' (medical doctors), 1 mental health,offices (e.g.,centers,clinics) Medical doctors' (MDs), 1 mental health,offices (e.g.centers,clinics) Mental health centers 1 and clinics(except hospitals),outpatient Mental health 1 physicians'offices(e.g., centers, clinics) Psychiatrists'offices 2 (e.g., centers,clinics) Psychologists'offices 2 (e.g.,centers,clinics), clinical Psychotherapists' 4 (except MDs or DOs) offices(e.g.,centers, clinics) Psychotherapists'(MDs 1 or DOs)offices(e.g., centers, clinics) Social workers', mental 2 health,offices(e.g., centers, clinics) Art and artists 15 Art(except commercial 1 or graphic) instruction Artists(except 3 commercial, musical), independent Artists(i.e., painters), 3 independent Artists, independent 1 commercial Arts, Entertainment, 4 and Recreation (General) LU 25-0002 ATTACHMENT 4/PAGE 3 OF 3 LU 25-0002 EXHIBIT D-2/PAGE 74 OF 74 EXHIBIT D-3 C61s4„, MEMORANDUM C15REG ) TO: Planning Commission FROM: Michael McNamee, Associate Planner Planning Department SUBJECT: Home Occupation Code Update (LU 25-0002) Work Session #3 DATE: May 30, 2025 MEETING DATE: June 9, 2025 EXECUTIVE SUMMARY&ACTION REQUESTED This memo provides background for the Planning Commission's (Commission) June 9 work session on the City's home occupation standards. Staff will provide an update on the project and ask the Commission for direction on draft code language that staff has developed since the last work session on April 14. Specifically, the Commission will be asked to provide direction on whether to bring forth the proposed draft code amendments to a public hearing on July 28. BACKGROUND The City's use-specific standards for home occupations (LOC 50.03.004.1.b) contain language that is neither clear nor objective. In particular, the standard in Subcriterion (1), below, makes it difficult for home occupation applicants, neighbors, the general public, and staff to understand and enforce the limitations of a home occupation: A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: (1) The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. /// The purpose of this project is to replace Subcriterion (1), above, with new code language that distills the concepts of"residential character" and "peaceful enjoyment of the neighborhood" into measurable, objective standards that provide a clear path for approval and ongoing compliance for home occupations. Respect. Trust. 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY EXHIBIT D-3 Page 2 of 10 Staff discussed this issue with the City Council at their meeting on June 18, 2024, as part of a general update on code enforcement. The Council expressed support and directed staff to study how to replace Subcriterion (1) with clear and objective code language. Staff then researched home occupation regulations in peer jurisdictions to help provide background and context for potential new regulations. Staff shared this research with the Commission at its first work session on this project on January 27, 2025, and the Commission provided staff with initial feedback on a range of potential new code concepts to replace Subcriterion (1). Staff then distributed a survey to all business licensees who had an active home-based business in the city and an email address on file to get a sense of how the potential new code concepts could impact their business. The survey was open for three weeks—from February 26 to March 19—and received 157 responses (a roughly 28% response rate). The results of this survey were attached to the memo for the second Planning Commission work session on April 14. The Council held a study session on this project on April 1 to review the preliminary results of the survey and provide additional direction to staff on initial code concepts. This included direction to staff to develop amendments that codify the City's existing internal policy to prohibit any outdoor activities associated with a home occupation. During its second work session on April 14, the Commission received an update from staff on the results of the survey as well as the direction from City Council. While the Commission understood the Council's direction to not allow outdoor activities associated with home occupations, they provided direction to staff to develop alternate code concept options for Council consideration that would allow outdoor activity under certain circumstances. This feedback has been incorporated into the draft code amendments outlined in this memo. Additionally, staff discussed this project with the Neighborhood Chairs Committee at their meetings on January 18, 2025, and May 17, 2025. DISCUSSION Home Occupation Regulation Concepts LOC 50.03.004.1.b(1) articulates a goal of retaining neighborhood character and peaceful enjoyment of the neighborhood by those living in close proximity to a home occupation. Staff explored several different ways of achieving this regulatory goal through requirements that are objective and measurable, which were based on existing code enforcement practices and refined by the work sessions with the Planning Commission. Draft code amendments have been developed and are attached as Attachment 1. Each proposed change is discussed below. 1. Classifying home occupations into different types. This proposed change would create three new classifications for home occupations: Types A, B, and C. Doing this would make it easier for the City to have more robust regulations for home occupations that typically have a larger impact on the surrounding neighborhood. It would also make it clear that some regulations do not apply to short term rentals. Several cities around the metro region use similar classifications for home — Respect. Excellence. Trust. Service. EXHIBIT D-3 Page 3 of 10 occupations, including Portland and Tigard —which were used as reference points to develop the code language. The three types are defined in the proposed draft code language in Attachment 1: There are three types of home occupations: Type A, Type B, and Type C. Type A. A Type A home occupation is one where the resident(s) use a portion of the home to operate a business; however, no customers come to the site. Type A home occupations may also involve a home that is used as a business address but is not used for business operations. Type B. A Type B home occupation is one where the resident(s) use the home to operate a business and customers may come to the site. Type C. Short-term rentals. Business owners would self-classify as Type A, B, or C when applying for or renewing their business license. The Finance Department handles business license applications, which are submitted on paper for renewals. Based on the Department's past experience with other critical fields on the renewal form being left blank by respondents, staff estimates that up to 20 percent of respondents may not fill out the information regarding their business type. Staff notes that, while this lack of information could cause some confusion for staff when responding to complaints related to home occupations that did not identify whether they are Type A, B, or C, code enforcement staff would still be able to identify which home occupation classification would apply to the business. 2. Adding a limit on hazardous substances. Code enforcement staff suggested adding a ban on hazardous substances based on their experience with home occupation businesses that stored and used an amount of hazardous materials greater than those used by a typical household (example: acetylene for welding/iron work). Given that hazardous substances are largely regulated at the state and federal levels, currently there isn't a City standard that addresses them in relation to home occupations. Adding a regulation to the city's home occupation standards would make it possible for the City's enforcement specialists to prohibit a home occupation use from storing and using an amount of a hazardous substance that is greater than the typical household limit. Proposed code language (Attachment 1): Any substance listed or described as hazardous in ORS Chapter 453 (Hazardous Substances) is not permitted at the property where the business occurs, except that consumer quantities are allowed. Consumer quantities of hazardous substances are packaged and distributed in a form intended or suitable for sale through retail sales outlets for consumption by individuals for purposes of personal care and household use. Among peer cities, it is common to ban or restrict the use of hazardous substances. The code language uses Portland's home occupation regulations as a reference, particularly for how to handle small "household" amounts of hazardous substances. Permitting Respect. Trust. EXHIBIT D-3 Page 4 of 10 small amounts of hazardous substances should avoid inadvertently creating a regulation that disallows commonly found household cleaners or similar substances. The code would reference the definition of hazardous materials already in LOC 50.10.003.2, which in turn refers to the definition provided in state law (ORS 435.005): Hazardous Substances:Any substance listed or described as hazardous in ORS Chapter 453 (Hazardous Substances). "Hazardous substances"are toxic, corrosive, irritants, strong sensitizers,flammable, combustible, or generate pressure through decomposition, heat or other means. Hazardous substances or mixture of substances may cause substantial personal injury or illness during, or as a proximate result of any customary or reasonably foreseeable handling or use. 3. Adding a reference to the City's public nuisance ordinances. At the beginning of the project, staff initially explored code concepts that would restrict noise, emissions, and other similar impacts from home occupation businesses, as is fairly common among other cities in the metro region. However, the City Council's feedback was that, if possible, it would be best for the City to simply apply the general nuisance ordinance to home occupations rather than limiting noise, emissions, etc. specifically for home occupations. As discussed later in this memo, restricting or banning outdoor activities, limiting the number of clients, and other measures may also reduce noise levels without the need for a specific ban on amplified noise. In light of this direction from Council, staff suggests adopting language that makes it clear to home occupation applicants that noise restrictions are already in place based on the existing public nuisance rules. Proposed draft code language (Attachment 1): The City's public nuisance rules (LOC Art. 34.08, LOC Art. 34.10) apply to home occupations, and any complaints of a public nuisance related to a home occupation shall be treated the same as any other public nuisance. Though simply eliminating Subcriterion (1) from the use-specific standards for home occupations would likely result in noise complaints related to home occupations being treated like any general nuisance, staff suggests making it explicit within the use-specific standards for home occupations that the City's public nuisance rules apply to home occupations. Adopting the code language proposed above and in Attachment 1 would provide additional clarity for owners of home occupation businesses, neighbors, and the general public regarding the noise regulations that apply to home occupations. 4. Adding a restriction on commercial vehicles that can be parked off the property with the home occupation use.This concept has evolved over the course of the project. Originally, staff explored the idea of placing a limit on the number of commercial vehicles associated with a particular business. At the Council study session, Councilors suggested that neighborhood impacts could be limited if work and/or commercial vehicles were mostly confined to the property where the home-based occupation was located. They also expressed the importance of keeping such vehicles from occupying Respect. Trust. EXHIBIT D-3 Page 5 of 10 too much space in on-street parking in residential neighborhoods. In response to this feedback, staff is proposing draft code language that would permit commercial vehicles as long as they are parked on the property where the home occupation is located, with one additional vehicle permitted off the property. An enforcement distance of 300 feet is proposed in the code because it is a commonly used distance for noticing, and therefore generally accepted as way to define the area of influence for a property's activity. The proposed draft code language identifies vehicles associated with a home occupation business through the presence of, "visible company or commercial markings," as Code Enforcement staff have noted that this would be the most straightforward way to clearly identify a vehicle as associated with the home occupation in order to practically enforce this standard. Proposed draft code language (Attachment 1): No more than one vehicle per home occupation business is permitted to be parked off site within 300 feet of the property where the business occurs. Vehicles associated with a home occupation business will be identified by the presence of visible company or commercial markings on the exterior of the vehicle. 5. Adding language that clarifies that home daycare uses are exempt from specific use standards under state law. Family child care homes are exempt from certain specific use regulations under ORS 329A.440. The law holds that in residential zones, a local government may not impose land use regulations, special fees, or conditions on a family child care home (defined as a child care facility in a dwelling that is caring for not more than 16 children and is certified under ORS 329A.280 or is registered under ORS 329A.330) that are more restrictive than that for a residential dwelling. While doing outreach for this project, staff noted that questions about this were fairly common, indicating that the public does not have a clear understanding of what the state law says. In order to clarify, it is proposed that language be added to the code that clearly states family child care homes are exempt from home occupation rules under state law. This is not uncommon to see among other cities in the metro area, and the code is modeled after language in Portland's home occupation regulations. Proposed draft code language (Attachment 1): Registered or certified family child care homes that also meet the State's requirements of ORS 329A are exempt from the regulations of this section. 6. For Type B businesses: adding a restriction on the number of clients permitted on site at once. This regulation would apply only to Type B home occupations, or a business where customers or clients are coming to the site. It would limit the number of clients permitted on site at one time. This was chosen over a limit on the number of people allowed over a period of time based on feedback from code enforcement staff that this was more feasible to enforce. Staff notes that limiting the number of clients who can visit a home occupation at one time indirectly addresses many of the adverse impacts of — Respect. Excellence. Trust. Service. EXHIBIT D-3 Page 6 of 10 a home occupation, including noise, traffic and parking impacts, and neighborhood character concerns. At the April 14 work session, the Planning Commission expressed a desire to increase the number of clients from five, which was proposed as a placeholder number in the code concepts. Based on this feedback and what staff has learned from home occupation owners as far as their needs, the proposed limit has been increased to eight. Proposed draft code language (Attachment 1): No more than eight clients, including persons accompanying clients, are permitted at the dwelling where the business occurs at the same time. 7. For Type B businesses: limiting or banning outdoor activity.The concept of an outright ban on outdoor activity was initially proposed by staff, as there is a standing internal policy to not allow outdoor activities associated with a home occupation when enforcing Subcriterion (1). When this concept was discussed with the Neighborhood Chairs Committee (NCC), residents expressed concerns that such a ban could be overly- restrictive for home occupations. Staff received similar feedback from the Commission when this concept was discussed at previous work sessions. When staff outlined the issue at the City Council study session on April 1, the Council directed staff to return to the initial concept of placing an outright ban on all outdoor activities associated with a home occupation. The stated reason was because outdoor activity is more likely to impact neighbors than other home occupation activity, and because enforcement staff have already proven that they are able to effectively enforce the current policy. At the work session on April 14, the Commission continued to express a desire not to preclude home occupation-related outdoor activity that is not disruptive to neighbors, such as a business owner working outside by themselves. The Commission directed staff to draft an optional code concept for Council consideration that would, for example, permit a business owner that is an artist to create their artwork outside, while still prohibiting outdoor business activity involving clients that might generate excessive noise, emissions, or similar impacts. In response to this direction, the draft code presented in Attachment 1 provides two options for addressing outdoor activity. One is an outright ban, as directed by the Council, and the other allows for limited outdoor activity, as specifically defined in the proposed code to reflect the desire of the Planning Commission to have more flexibility while still limiting impacts. Regardless of the option that is selected, the language is crafted such that only activity that involves clients would be limited or banned. Respect. Trust. EXHIBIT D-3 Page 7 of 10 Proposed draft code language (Attachment 1): Outdoor Activity Option 1 —Some Outdoor Activity Allowed Outdoor activities associated with the business and involving clients are not permitted, except that the City may permit some limited outdoor activity as provided below: (i) Instructional or demonstration uses directly led by the home occupation holder such as art, gardening, or yoga classes limited to eight participants are permitted. No more than two outdoor sessions are permitted per day, and no more than four outdoor sessions are permitted per week. Outdoor business activities may only occur between 9:00 am and 7:00 pm, Monday through Saturday. No outdoor business activity is permitted on Sundays or public holidays. (ii) Use of outdoor space for events, rentals, parties, weddings, performances, markets, or other commercial gatherings are prohibited. Platforms or services offering space rentals may not list the property for business-related outdoor use. Outdoor Activity Option 2—No Outdoor Activity Allowed Outdoor activities associated with the business and involving clients are not permitted. The wording of the proposed Outdoor Activity Option 1 reflects the Commission's input to develop code amendments that would allow limited outdoor business activity that is not disruptive to neighbors. The provisions in Outdoor Activity Option 1 would not apply to Type A businesses, where clients do not come to the site, as such businesses are generally assumed to have fewer impacts on surrounding residential character. If a business owner were performing an outdoor business activity without clients that generated excessive noise, emissions, or similar impacts, the City's nuisance laws could be enforced. In the more flexible code option— Outdoor Activity Option 1 —only classes would be allowed outside, such as a gardening class or private swim lessons. Limits would be placed on the number of classes permitted per day and week, and hours would be limited to between 9:00 am and 7:00 PM, Monday through Saturday. Outdoor activity would not be permitted on Sundays or on public holidays. Commercial events and parties, concerts, outdoor markets, outdoor space rentals, and other similar uses would not be allowed. Urban Agriculture and Farm Stands In doing research and public outreach for this project, staff identified two agricultural uses that may be more appropriate to regulate separately from other home occupations. While these uses can be appropriate in residential zones under certain circumstances, they may also Respect. Trust. EXHIBIT D-3 Page 8 of 10 produce more impacts on surrounding residential character than other types of home occupations. As such, it may not be appropriate to classify these uses as home occupations. • Farm stands are currently allowed in some nonresidential zones and are defined as, "A temporary or permanent structure used for the sale of fresh produce and seasonal items, including flowers, holiday trees, and wreaths" (LOC 50.10.003.2). • Urban agriculture would be a new use defined in the code that would permit a property owner in some residential zones to grow produce and sell food or drink products on their property, subject to some limitations (which would be defined in the specific use standards). These uses share some similarity to a use that is already allowed in the residential zones - community gardens. "Community garden" is defined in LOC 50.10.003.2 as: An area for cultivation of food crops and/or ornamental plants operated by a public or non-profit entity for more than one person or family with plots allocated among the participants or members, but where crops are not sold commercially. Community gardens are permitted as an accessory use in all residential zones as long as they are 4,000 square feet in area or smaller. If they are greater in size than 4,000 square feet, they may be approved through a conditional use. Farm stands already have a use-specific standard in LOC 50.03.004.1.b.i that limits their size to 800 square feet when they are an accessory use. The proposed code amendments would permit them in the lowest density residential zones, R-10 and R-15. No additional use-specific standards or changes related to farm stands are proposed. Staff is seeking direction from the Commission regarding whether farm stands should be allowed in additional residential zones, beyond R-10 and R-15, especially since community gardens are permitted in all of them. Urban agriculture is also proposed to be permitted as an accessory use in the R-10 and R-15 zones, and — if the Commission finds it appropriate—could be expanded to additional residential zones as well. "Urban agriculture" is proposed to be defined as follows in the draft code amendments (Attachment 1): A site where food is grown to be sold, including crops that will be used to produce alcoholic or other beverages. Excludes heavy manufacturing. Can include an area for serving or tasting. The food may be sold directly to consumers, restaurants, stores, or other buyers, or at Food Markets. This definition is partly modeled after a use that is defined in Portland's zoning code as "Market Gardens," which also allow for crops to be grown and sold on residential properties. Lake Oswego's proposed definition would also permit an area for serving food or providing tastings, which would allow wineries or similar uses that typically have tasting rooms. Staff is proposing to introduce new specific use standards for urban agriculture to mitigate some of the potential negative impacts of the use on surrounding properties. Two options for urban agricultural uses have been developed for the Commission's consideration: Respect. Trust. EXHIBIT D-3 Page 9 of 10 • Urban Agriculture Option 1 would limit the availability of urban agriculture to properties that are a certain size, currently at least one acre. The total area would also be limited to 20,000 square feet or 35 percent of the area of the lot, which is partly based on Portland's use regulations for Market Gardens. • Urban Agriculture Option 2 would permit Urban Agriculture on any size property, but limit the size to 4,000 square feet in area unless a conditional use is approved allowing a larger size. This option is based on the City's current regulations for Community Gardens. Both of these options would include regulations allowing on-site sales and serving of food, with some limitations. Hours would be limited to between 7:00 am and 8:00 pm (the same as for community gardens). Sales and serving would be limited to 70 calendar days per year, or slightly more than once per week. A maximum of 30 clients would be permitted on site. If the business used any motorized equipment, operation would only be permitted between 7:00 am and 8:00 pm. The City could approve a use that exceeded the allowances in the code through a conditional use approval. Proposed draft code amendments (Attachment 1): Urban Agriculture Option 1 —Availability Limited to Large Lots Urban Agriculture. This use shall be permitted under the following conditions: (1) The property must have a minimum lot size of one acre. (2) The urban agriculture use shall have a maximum area of 20,000 square feet or 35 percent of the area of the lot, whichever is less. The maximum area includes the area under cultivation, the area covered by any structures associated with food production, the compost pile, or any other area associated with the activities of the agriculture use. (3) On-site sales and serving are allowed, and shall meet the following additional standards: (a) Sales and serving are allowed only between 7:00 am and 8:00 pm. (b) Sales and serving are allowed up to 70 days in each calendar year. (c) A maximum of 30 clients, including persons accompanying clients, are permitted on the property at the same time. (4) Use of motorized equipment is only allowed between 7:00 am and 8:00 pm. (5) An Urban Agriculture use that does not comply with the standards of this section may be permitted with approval of a conditional use permit, pursuant to LOC 50.07.005. — Respect. Excellence. Trust. Service. EXHIBIT D-3 Page 10 of 10 Urban Agriculture Option 2—Open Availability, Similar to Community Gardens Urban Agriculture. (1) Urban Agriculture is allowed as an accessory use if the total area does not exceed 4,000 square feet. Urban Agriculture uses with an area greater than 4,000 square feet require a conditional use permit. The maximum area includes the area under cultivation, the area covered by any structures associated with food production, the compost pile, or any other area associated with the activities of the agriculture use. (2) On-site sales and serving are allowed, and shall meet the following additional standards: (a) Sales and serving are allowed only between 7:00 am and 8:00 pm. (b) Sales and serving are allowed up to 70 days in each calendar year. (c) A maximum of 30 clients, including persons accompanying clients, are permitted on the property at the same time. (3) Use of motorized equipment is only allowed between 7:00 am and 8:00 pm. (4) An Urban Agriculture use that does not comply with the standards of this section may be permitted with approval of a conditional use permit, pursuant to LOC 50.07.005. REVISED PROJECT SCHEDULE To provide enough time for staff to fully research and craft code updates, the project schedule has been revised from what was originally presented to the Commission at the January 27 work session. The updated tentative schedule is below. Home PCWS CCWS PCWS PCWS PC PC CCPH Occupation #1 #2 #3 Hearing Findings Code Update Jan. 27, Apr. 1, Apr. 14, June 9, July 28, Aug. 11, Sept. 16, 2025 2025 2025 2025 2025 2025 2025 Concepts Draft Code Hearings»» ATTACHMENTS 1. Draft Code Amendments, 5/29/2025 Respect. Trust. EXHIBIT D-3 Draft 05/29/2025 LOC 50.03.004 Accessory Structures and Uses 1. Accessory Uses a. General Standards /// b. Standards for Specific Uses i. Farm Stand. As an accessory use,farm stands are limited to one per site with a maximum size of 800 sq.ft. floor area. ii. Home Occupation.There are three types of home occupations:Type A,Type B, and Type C. Type A.A Type A home occupation is one where the resident(s) use a portion of the home to operate a business; however, no customers come to the site.Type A home occupations may also involve a home that is used as a business address but is not used for business operations. Type B.A Type B home occupation is one where the resident(s) use a portion of the home to operate a business and customers may come to the site. Type C. Short-term rentals. Commentary: Home occupations are proposed to be categorized into three different types. This will make it easier for the City to apply additional rules to home occupations that have a greater impact on the surrounding neighborhood. It also makes it clear that certain rules do not apply to short term rentals—and vice versa. A Type A,Type B, or Type C home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied withmet: {1)The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. Commentary:This standard is proposed to be removed because it uses vague, nebulous language that is difficult to enforce and for the public and home occupation owners to understand. It would be replaced by the new standards provided in this section below. (12)A current and valid business license is maintained. (23) No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping, yard maintenance, or other domestic services for the dwelling where the business occurs. L4LNo outside storage of goods or materials other than live vegetation. Commentary:The word "live" is proposed to be added, clarifying that piles of mulch or yard debris are not permitted. (4) Any substance listed or described as hazardous in ORS Chapter 453 (Hazardous Substances) is not permitted at the property where the business occurs, except that LU 25-0002 ATTACHMENT 1/PAGE 1 OF 7 EXHIBIT D-3 Draft 05/29/2025 consumer quantities are allowed. Consumer quantities of hazardous substances are packaged and distributed in a form intended or suitable for sale through retail sales outlets for consumption by individuals for purposes of personal care and household use. Commentary:This standard would make it clear that hazardous substance limitations apply to home occupation uses, creating a path for code enforcement to use when they encounter hazardous materials. While hazardous substances are regulated at the state level, adding a regulation to the city's home occupation standards would make it possible to prohibit a home occupation use from storing and using an amount of a hazardous substance that is greater than the typical household limit. (5)The City's public nuisance rules (LOC Art. 34.08, LOC Art. 34.10) apply to home occupations, and any complaints of a public nuisance related to a home occupation shall be treated the same as any other public nuisance. Commentary:This standard is proposed to be added to clarify that the City's existing public nuisance rules apply to home occupations.This was seen as a preferable option by the Planning Commission and staff when compared with creating new nuisance rules specifically for home occupations. By adding language to the home occupation standards, it is made clear to home occupation owners that they must comply with nuisance rules. L5.ZNo more than 25% of the aggregate floor area on the lot is devoted to nonresidential use, except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met. (7) No more than one vehicle per home occupation business is permitted to be parked off site within 300 feet of the property where the business occurs. Vehicles associated with a home occupation business will be identified by the presence of visible company or commercial markings on the exterior of the vehicle. Commentary:This regulation would make it so that any number of commercial vehicles are permitted as long as they can be parked on the property where the home occupation is located. Otherwise, each home occupation business would be permitted to have one vehicle parked off the property, within 300 feet. An enforcement distance of 300 feet is proposed in the code because it is a commonly used distance for noticing, and therefore generally accepted as way to define the area of influence for a property's activity. (8) Registered or certified family child care homes that also meet the State's requirements of ORS 329A are exempt from the regulations of this section. Commentary:State law limits the ability of localities to apply additional use regulations to child care homes in residential zones.This regulation makes it clear to the public and business owners that child care homes are exempt from the specific use regulations for home occupations. LU 25-0002 ATTACHMENT 1/PAGE 2 OF 7 EXHIBIT D-3 Draft 05/29/2025 (96) Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited. (10)Type B Home Occupations shall meet the following additional standards: (a) No more than eight clients, including persons accompanying clients, are permitted at the dwelling where the business occurs at the same time. Commentary:This provision would be added to address the impacts that are attached to client visitation. Code enforcement staff noted that a limitation based on a period of time, such as a limitation of 8 clients per day or 2 clients per hour,would be difficult to enforce, and that a limitation based on total number of clients at one time would be more enforceable. Outdoor Activity—Option 1 (b) Outdoor activities associated with the business and involving clients are not permitted, except that the City may permit some limited outdoor activity as provided below: (i) Instructional or demonstration uses directly led by the home occupation holder such as art, gardening, or yoga classes, limited to eight participants at one time are permitted. No more than two outdoor sessions are permitted per day, and no more than four outdoor sessions are permitted per week. Outdoor business activities may only occur between 9:00 am and 7:00 pm, Monday through Saturday. No outdoor business activity is permitted on Sundays or public holidays. (ii) Use of outdoor space for events, rentals, parties, weddings, performances, markets, or other commercial gatherings are prohibited. Platforms or services offering space rentals may not list the property for business-related outdoor use. Commentary:This option would disallow outdoor activity associated with a home occupation business,with some exceptions.The language is written specifically to only apply to outdoor activity that includes clients, which would allow business owners to work alone outside. Lower impact client activities, like teaching a workout or gardening class, are proposed to be permitted with some limitations on the number of clients permitted at once,the number of classes allowed over a period of time, and the time of day/days of the week. Higher impact activities have been specifically called out as being prohibited to make it clear that this allowance does not apply to them. Outdoor Activity—Option 2 (b) Outdoor activities associated with the business and involving clients are not permitted. Commentary:This option would disallow outdoor activity associated with a home occupation business entirely.This aligns with the direction provided by the City Council LU 25-0002 ATTACHMENT 1/PAGE 3 OF 7 EXHIBIT D-3 Draft 05/29/2025 in the work session on April 1, 2025. Again,the prohibition would only apply to outdoor activity that involves clients, allowing business owners to work outside by themselves. (117)Type C Home Occupations, sghort-term rentals,shall meet the following additional standards: (a)A person who owns a lot containing a short-term rental (primary or secondary dwelling unit) must maintain their primary residence on the lot.The owner is not required to be on the lot when the dwelling is rented. (b) No other commercial uses are allowed in conjunction with or accessory to a short-term rental.The short-term rental shall not be marketed for group events such as weddings, classes, or similar events, for example. Commentary:These are existing standards that apply only to short term rentals. No changes are proposed except that short term rentals would be newly classified as "Type C" home occupations,to match the new classification scheme. /// Urban Agriculture Use Standards-Option 1 /// vii. Urban Agriculture.This use shall be permitted under the following conditions: (1) The property must have a minimum lot size of one acre. (2) The urban agriculture use shall have a maximum area of 20,000 square feet or 35 percent of the area of the lot,whichever is less.The maximum area includes the area under cultivation,the area covered by any structures associated with food production,the compost pile, or any other area associated with the activities of the agriculture use. (3) On-site sales and serving are allowed, and shall meet the following additional standards: (a) Sales and serving are allowed only between 7:00 am and 8:00 pm. (b) Sales and serving are allowed up to 70 days in each calendar year. (c) A maximum of 30 clients, including persons accompanying clients, are permitted on the property at the same time. (4) Use of motorized equipment is only allowed between 7:00 am and 8:00 pm. (5) An Urban Agriculture use that does not comply with the standards of this section may be permitted with approval of a conditional use permit, pursuant to LOC 50.07.005. Commentary: "Urban agriculture"would be a new land use that would be permitted (sometimes on a conditional basis) as an accessory use in some residential zones.The above standards would be new specific use regulations that would apply to Urban Agriculture. They are heavily based on the City of Portland's regulation for a similar use, Market Gardens. A minimum lot size LU 25-0002 ATTACHMENT 1/PAGE 4 OF 7 EXHIBIT D-3 Draft 05/29/2025 of one acre has been added to limit the number of properties where agriculture could take place. A maximum area of the agricultural use to 20,000 square feet (which is based on Portland's maximum area for Market Gardens in the R-10 zone) or 35 percent of the area of the lot would also limit the coverage of the use on a property, minimizing the impact on residential character of the neighborhood. Food sales and serving/tastings are permitted. Hours of operation of food sales and serving, along with hours of operation for the use of motorized equipment, are limited to the same hours that a Community Garden can operate, 7 am—8 pm. Food sales and serving are also limited to 70 days per calendar year, or slightly more than once per week,to preserve residential character. A maximum number of 30 clients is permitted at once to also help prevent disruption to the neighborhood.A conditional use process is provided for property owners who wish to exceed these limitations. Urban Agriculture Use Standards-Option 2 /// vii. Urban Agriculture. (1) Urban Agriculture is allowed as an accessory use if the total area does not exceed 4,000 square feet. Urban Agriculture uses with an area greater than 4,000 square feet require a conditional use permit.The maximum area includes the area under cultivation, the area covered by any structures associated with food production,the compost pile, or any other area associated with the activities of the agriculture use. (2) On-site sales and serving are allowed, and shall meet the following additional standards: (a) Sales and serving are allowed only between 7:00 am and 8:00 pm. (b) Sales and serving are allowed up to 70 days in each calendar year. (c) A maximum of 30 clients, including persons accompanying clients, are permitted on the property at the same time. (3) Use of motorized equipment is only allowed between 7:00 am and 8:00 pm. 44.(4) An Urban Agriculture use that does not comply with the standards of this section may be permitted with approval of a conditional use permit, pursuant to LOC 50.07.005. Commentary:This second option for Urban Agriculture use standards is based on the City's existing standards for Community Gardens, specifically when it comes to maximum area of the agricultural use.The total area is limited to 4,000 square feet, except that a larger area can be granted through a conditional use process,the same as Community Gardens. A minimum lot size would not be required. Standards about food sales and serving, and the use of motorized equipment, are the same as Option 1. /// LU 25-0002 ATTACHMENT 1/PAGE 5 OF 7 EXHIBIT D-3 Draft 05/29/2025 LOC 50.10.003 Definitions 2. Definition of Terms. /// Farm Stand A temporary or permanent structure used for the sale of fresh produce and seasonal items, including flowers, holiday trees, and wreaths. /// Urban Agriculture A site where food is grown to be sold, including crops that will be used to produce alcoholic or other beverages. Excludes heavy manufacturing. Can include an area for serving or tasting.The food may be sold directly to consumers, restaurants, stores, or other buyers, or at Food Markets. Commentary:A new definition would be added for a land use called "Urban Agriculture."This definition is partly based on the City of Portland's definition for a use called Market Gardens. The intention is to allow for growing produce on a property, which can then be sold as raw produce or as a food product derived from that produce, on site or to off-site customers. An area for serving food or providing tastings is specifically allowed. /// LU 25-0002 ATTACHMENT 1/PAGE 6 OF 7 EXHIBIT D-3 Draft 05/29/2025 LOC 50.03.002 Use Table 2. Residential Land Use Table. /// TABLE 50.03.002-1:RESIDENTIAL DISTRICTS USE TABLE P=Permitted Use I Blank=Not Permitted I C=Conditional Use I A=Accessory Use [x]Table notes located at the end of the table _ Use Use Type Residential Use-Specific Category Standards R-15 R-10 R-7.5 R-6 R-5 R-DD R-W R-3[3] R-2 R-0[3][4] ACCESSORY USES Accessory Community A A A A A A A A A A §50.03.003.6.j Uses garden Farm stand H A §50.03.004.1.b.i Urban A/C A/C §50.03.004.1.b.vii agriculture Home A A A A A A A A A A §50.03.004.1.b.ii occupation Short-term A A A A A A A A A A §50.03.004.1.b.ii rental lodging Large animals A A §50.03.004.1.b.iii kept for owner's personal use Small animals A A A A A A A A A A kept for owner's personal use[2] Accessory A A A A A A A A A A §50.03.004.1.b.vi dwelling unit Commentary: Farm Stands and "Urban Agriculture"would become permitted as accessory uses in the lowest density residential districts,the R- 10 and R-15. Urban Agriculture would sometimes require a conditional use approval,which is why a status of"A/C" is provided. /// LU 25-0002 ATTACHMENT 1/PAGE 7 OF 7 EXHIBIT D-4 PLANNING AND BUILDING SERVICES cf" EGO� STAFF REPORT CITY OF LAKE OSWEGO PLANNING AND BUILDING SERVICES DEPARTMENT APPLICANT FILE NO. City of Lake Oswego LU 25-0002, Ordinance 2964 LOCATION STAFF Citywide Michael McNamee, Associate Planner DATE OF REPORT PLANNING COMMISSION HEARING DATE November 14, 2025 November 24, 2025 I. APPLICANT'S REQUEST The City of Lake Oswego is proposing to amend the use-specific standards for home occupations (LOC 50.03.004.1.b). This project is intended to replace subjective language with more objective, measurable standards that can be easily understood by home occupation business applicants and neighbors. The updated regulations must also be able to be effectively enforced and consistently applied by Planning and Code Enforcement staff. II. APPLICABLE REGULATIONS A. City of Lake Oswego Comprehensive Plan Land Use Planning Policy C-4 Complete Neighborhoods & Housing Policy C-6 Economic Vitality Policies A-3 and A-10 Community Health & Public Safety: Public Safety, Police and Fire Protection Policy 4 Sound Quality Policy 1 Access to Local Food Policy 3 Open Spaces & Natural Areas, Air Resources Quality (Goal 6) Policy 5 Respect. Excellence. Trust. .1_ 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY EXHIBIT D-4 B. Neighborhood Plans Glenmorrie Housing Policies 6 and 7 Lake Forest Air, Water, and Land Resources: Sound Quality Policy 1 Economic Development and Commercial Lands Policy 5 Housing/Residential Land Use Policies 5 and 6 Waluga Economic Development Policies 10 and 11 C. City of Lake Oswego Community Development Code LOC 50.07.003.16.a.i Legislative Decisions Defined LOC 50.07.003.16.c Required Notice to DLCD LOC 50.07.003.16.d Planning Commission Recommendation Required LOC 50.07.003.16.e City Council Review and Decision III. BACKGROUND AND DISCUSSION The City's use-specific standards for home occupations (LOC 50.03.004.1.b) contain language that is neither clear nor objective. In particular, the standard in Subcriterion (1), below, makes it difficult for home occupation applicants, neighbors, the general public, and staff to understand and enforce the limitations of a home occupation: A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: (1) The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. /// The purpose of the proposed amendments is to replace Subcriterion (1), above, with new code language that distills the concepts of "residential character" and "peaceful enjoyment of the neighborhood" into more measurable, objective standards that provide a clear path for approval and ongoing compliance for home occupations. The current standard is undefined and open to interpretation, causing uncertainty for home business operators as well as differing views among neighbors about potential neighborhood impacts. Having more clear and objective standards would help staff determine if a business is negatively impacting residential neighborhoods. Planning Commission Public Hearing Page 2 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 Staff discussed this issue with the City Council at their meeting on June 18, 2024, as part of a general update on code enforcement. The Council expressed support and directed staff to study how to replace Subcriterion (1) with clear and objective code language. Staff then researched home occupation regulations in peer jurisdictions to help provide background and context for potential new regulations. Staff shared this research with the Planning Commission at its first work session on this project on January 27, 2025, and the Commission provided staff with initial feedback on a range of potential new code concepts to replace Subcriterion (1). Staff then distributed a survey to all business licensees who had an active home-based business in the city and an email address on file to get a sense of how the potential new code concepts could impact their business. The survey was open for three weeks—from February 26 to March 19—and received 157 responses (a roughly 28% response rate). Based on feedback from the survey and the findings of the research, staff identified an additional need to address accessory agricultural uses that are currently operating in residential zones but would not meet the proposed new standards for home occupations. To that end, staff proposed creating a new use called Urban Agriculture, which would be allowed as a conditional use in the R- 10 and R-15 zones. The Urban Agriculture use, as initially proposed by staff, would have permitted food and/or plants to be grown and then sold, and would have also allowed an area for serving or tasting. As originally envisioned, the use would have been subject to use-specific standards regulating the minimum lot area required to establish the use, the maximum area on the lot that can be occupied by the use, and the manner in which serving and/or tasting can be operated, including limitations on hours of operation, number of days permitted per year, and the number of clients or customers permitted at once. Staff also proposed to expand the availability of farm stands to residential zones based on recent inquiries from residents interested in having a farm stand use on their residential property. The Council held a study session on April 1 to review the preliminary results of the survey and provide additional direction to staff on initial code concepts. Subsequently, the Commission conducted its second work session on the project on April 14, where they received an update from staff on the results of the survey as well as the direction from City Council. At a third Planning Commission work session on June 9, staff presented draft code amendments that reflected the input of the Council, Commission, and the public. The Commission then provided direction to further refine several of the concepts. At a final study session with the City Council on October 7, the Council provided direction on several of the concepts that had been developed or refined since the April 1 work session with the Commission. This direction included: • Removing the previously-proposed expansion of the farm stand use into residential zones. The Council determined that farm stands were not compatible with residential neighborhoods, particularly since the use could include seasonal operations such as Christmas tree lots, even if they are limited to 800 square feet in size. Planning Commission Public Hearing Page 3 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 • Tightening restrictions for outdoor activity under Option 1, which permits outdoor activity on a limited basis. The Council expressed a preference to reduce the number of clients or customers allowed to participate in outdoor activities (proposed to be eight in the 9/8/25 draft code amendments), to limit the potential negative impacts like noise and traffic. Council also directed staff to prohibit outdoor activities on Sundays. • Making the use-specific standards for urban agriculture more restrictive. In the 9/8/25 draft code amendments, staff proposed to permit sales and serving of food or drink up to 70 calendar days per year, and allow up to 30 clients or customers on site at once. The Council expressed concerns that the relatively high number of sales and service days and number of customers could adversely impacts neighbors, and asked staff to look into whether lowering them would be feasible given that there are existing businesses that would need to comply with the new regulations. Based on feedback from existing businesses, staff lowered the allowances to 45 calendar days and 10 clients at one time, respectively. The Council also directed staff to only permit urban agriculture as a conditional use to ensure potential negative impacts of the use are mitigated. Existing urban agriculture businesses would not be required to obtain a conditional use permit, but expansion of an existing business or a new urban agriculture use would. This feedback and direction are reflected in the attached draft code amendments (Attachment A- 1). Additionally, staff discussed this project with the Neighborhood Chairs Committee at their meetings on January 18, 2025, and May 17, 2025. Planning Commission Public Hearing Page 4 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 Changes to Home Occupation Standards The proposed draft code amendments would make the following changes to the use-specific standards for home occupations: 1. Delete Subcriterion (1), which states that a home occupation can't alter the residential character of the surrounding neighborhood or infringe upon the rights of neighboring residents to the peaceful enjoyment of the neighborhood. This standard is unclear and does not contain objective criteria and is proposed to be replaced with more objective requirements. 2. Classify home occupations into three types (A, B, and C) to allow the City to tailor additional regulations to those types of home occupations that may have a larger potential impact on neighboring properties. Type A businesses would be those that do not have customers come to the site or are simply used as a business address. Type B businesses would be those that involve customers coming to the site. Type C businesses would consist of short-term rentals, which are currently subject to home occupations regulations with their own set of use-specific standards. 3. Add a requirement that hazardous substances beyond consumer quantities are not allowed. While hazardous substances are regulated at the state level, adding a regulation to the City's home occupation standards would make it possible to prohibit a home occupation use from storing and using an amount of a hazardous substance that is greater than the typical household limit. 4. Add a reference to the City's existing public nuisance rules (LOC 34.08 and 34.10) to make it clear that they apply to home occupations. 5. Add a requirement that only one vehicle with visible company or commercial markings is allowed to be parked within 300 feet of the property where the home occupation is located. Parking has consistently been raised as a concern by community members and the City Council. The City recently eliminated minimum off-street parking requirements as part of its effort to comply with the state's Climate-Friendly and Equitable Communities (CFEC) program, so the City is limited in its ability to regulate off-street parking. Staff suggested regulating only vehicles with visible markings because Code Enforcement staff do not have access to state Department of Motor Vehicles (DMV) records to verify whether vehicles parked on the street are associated with a particular property; even if such records were available, it would be difficult for staff determine whether a given vehicle is associated with a specific home occupation business. 6. For Type B businesses—which involve customers coming to the site -add a requirement that only eight clients or customers are permitted on premises at one time. This requirement is intended to address multiple impacts of home occupations, including noise and parking issues. Code Enforcement staff noted that a limitation based on a period of time, such as a limitation of eight clients per day or two clients per hour, would be difficult to enforce, and that a limitation based on total number of clients at one time would be more enforceable in practice. Planning Commission Public Hearing Page 5 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 7. For Type B businesses, add a requirement that limits outdoor activity by either applying additional restrictions or banning it outright. The proposed code amendments offer two different approaches, which the Planning Commission will be asked to choose from: a. Option 1: Permits outdoor classes or demonstrations, like art or yoga classes, with a limit of six clients or customers permitted outdoors at once, a limit on the permitted hours of operation to between 9:00 am and 7:00 pm, and a ban on outdoor activity with clients on Sundays or public holidays. b. Option 2: Bans all outdoor activity with clients, consistent with existing internal policy. 8. Clarify that child care homes and adult foster homes are exempt from home occupation regulations under state law, improving public understanding of the rules. IV. NOTICE OF APPLICATION A. Newspaper Notice On November 12, 2025, public notice of the proposed Community Development Code text amendments and Planning Commission public hearing was published in the Lake Oswego Review. B. ORS 227.186 (Measure 56) Notice Staff determined notice of the proposal was not required by ORS 227.186 (Measure 56) to owners of property in the affected zones. C. DLCD Notice Pursuant to LOC 50.07.003.16.c and ORS 197.610, staff provided notice of the proposed Community Development Code (CDC) text amendment to the Oregon Department of Land Conservation and Development (DLCD). D. Metro Notice Pursuant to Metro Code 3.07.810 and .820, staff provided notice of the proposed CDC text amendment to Metro at least 35 days prior to the first evidentiary hearing date. V. COMPLIANCE WITH APPROVAL CRITERIA A. CITY OF LAKE OSWEGO COMPREHENSIVE PLAN Staff has identified the following Comprehensive Plan Policies applicable to this proposal: Land Use Planning— Design Standards and Guidelines Policy C-4 Planning Commission Public Hearing Page 6 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 Policy C-4: Establish and enforce regulations to abate unsightly conditions and other nuisance situations. Findings: The proposed regulations seek to control nuisances by placing clearer limits on home occupation business activities that could have negative impacts. Compared to the existing regulations, creating a more clear and objective regulatory structure is expected to lead to higher rates of compliance because the new regulations would be easier to understand and enforce. Higher rates of compliance with the home occupation standards would contribute to a more effective abatement of nuisances associated with home occupations. This policy is met. Complete Neighborhoods and Housing—Complete Neighborhoods Policy C-6 Policy C-6: Implement home occupation standards to regulate home-based businesses (occupations) to provide business development opportunities while preventing adverse impacts on residential areas. Findings: The proposed regulations directly address this policy by placing regulations on home- based businesses that seek to strike a balance between preventing adverse impacts on residential areas and providing business development opportunities. Through community engagement, the City has learned about the needs of home-based businesses while also gaining an understanding from the greater community about the adverse impacts they find the most concerning. These needs are reflected in the proposed code amendments. This policy is met. Economic Vitality—Economic Development Policies A-3 and A-10 Policy A-3: Provide flexibility for a diversity of spaces and sites to support the opportunity for business incubation and employment growth. Findings: Home occupations are an important type of business because they tend to cost less to operate than other brick-and-mortar businesses. This provides an opportunity for business incubation, which can ultimately lead to employment growth for the city. The proposed regulations would promote the continued operation of home-based businesses while making it easier for business owners to understand the limitations on home occupations through clearer and more objective code language. This policy is met Policy A-10: Permit home occupations as a source of business activity and growth while respecting neighborhood character and compatibility. Findings: The proposed amendments seek to strike a balance between permitting business activity and growth while minimizing potential adverse impacts on neighborhood character Planning Commission Public Hearing Page 7 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 and promoting compatibility with surrounding residential uses. The intent of the new regulations is to establish clearer and more objective standards regulating impacts of home occupations on neighborhood character and peaceful enjoyment of the neighborhood. Therefore, the regulations would continue to allow home occupations as a source of business activity and growth, while also making it easier for business owners to understand what is expected of them under the City's regulations. This policy is met. Community Health & Public Safety— Public Safety, Police and Fire Protection; Sound Quality; and Access to Local Food Policies 4, 1, and 3 Public Safety, Police and Fire Protection Policy 4: Require all home occupations to comply with the Oregon Fire Code. Findings: The proposed amendments would not alter the existing requirement for home occupations to comply with Fire Code. In the event that a specific use regulation is less restrictive than Fire Code, Fire Code would take precedence. This policy is met. Sound Quality Policy 1: Preserve and maintain the quiet character of residential neighborhoods, public open spaces, natural parks and parks with natural elements through zoning regulations and development standards. Findings: The proposed code amendments seek to maintain the quiet character of residential neighborhoods through clearer and more objective zoning regulations for home-based businesses. These standards are intended to provide guidelines for businesses to maintain compatibility with existing neighborhoods, including their existing quiet character. New code language would be added as a part of the proposed amendments to clarify that the City's existing public nuisance rules related to noise apply to home occupations. This policy is met. Access to Local Food Policy 3:Allow gardens as an accessory use in all residential zones where residents may grow and raise their own food. Findings: The proposed amendments would not alter the City's existing regulations that allow community gardens as an accessory use in all residential zones. The proposed amendments would create a new use, Urban Agriculture, which would allow residents in some residential zones to grow and raise food for their own consumption or for sale on site or at farmer's markets. As such, the amendments could have the impact of making locally grown food more readily available to residents. This policy is met. Planning Commission Public Hearing Page 8 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 Open Space & Natural Resources (Goal 6)—Air Resources Quality Policy 5 Policy 5: Encourage land use patterns which, while reducing dependency on the automobile, are also compatible with existing neighborhoods. Findings: The proposed code amendments seek to regulate a type of business that occurs out of a residential dwelling. This directly reduces dependency on the automobile by eliminating the need for the resident to commute to the business. The proposed amendments also are intended to maintain compatibility with existing neighborhoods by regulating elements of home-based businesses that can potentially become nuisances to surrounding neighbors. This policy is met. B. NEIGHBORHOOD PLANS Glenmorrie—Housing Policies 6 and 7 Policy 6: Prevent and abate nuisance situations such as excess noise, abandoned or nonoperational vehicles, dangerous buildings and the accumulation of refuse through enforcement of the nuisance provisions of the Lake Oswego Code (LOC 34.08). Findings: This policy is intended to ensure that the City's existing public nuisance regulations continue to be enforced with respect to noise, abandoned vehicles, dangerous buildings, and the accumulation of refuse. See the findings for Policy C-4 of the Lake Oswego Comprehensive Plan, in Section A, above. This policy is met. Policy 7: Ensure that home occupations do not conduct business activities, which cause adverse impacts such as outside storage, excessive traffic, and inappropriate hours of operation or noise. Findings: The proposed amendments would regulate the potential adverse impacts of home occupations, including provisions that address excessive on-street parking of commercial vehicles, hours of operation for outdoor activity, and the number of clients or customers permitted at one time. Taken as a whole, the proposed amendments are intended to minimize potential adverse impacts related to traffic and noise from home occupations. This policy is met. Lake Forest—Air, Water and Land Resources: Sound Quality, Economic Development and Commercial Lands, and Housing/Residential Land Use Policies 1, 5, 5, and 6 Planning Commission Public Hearing Page 9 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 Air, Water and Land Resources: Sound Quality Policy 1: Prevent noise problems by requiring the consideration of the compatibility of noise- sensitive and noise-producing land uses during Zone Changes, Comprehensive Plan Amendments, conditional uses, variances and home occupations, through enforcement of City regulations. Separate incompatible uses where feasible. Findings: The proposed amendments address noise impacts by adding a reference to the City's existing nuisance regulations to the use-specific regulations for home occupations, thereby making it clear to home occupation owners they must abide by those regulations. The regulations also place limits on the number of clients or customers permitted on site at one time, which is intended to indirectly control noise impacts. This policy is met. Economic Development and Commercial Lands Policy 5:All new home businesses will meet City home occupation standards which will be reviewed, administered and enforced by the City. Existing County-approved home occupations will be subject to the County's non-conforming use standards (LOC 48.26) Findings: New home-based businesses would be required to meet the proposed regulations. Existing businesses would also be required to comply with the proposed regulations when their license is renewed, which happens on an annual basis. This policy is met. Housing/Residential Land Use Policy 5:Abate nuisance situations such as excess noise, abandoned or non-operational vehicles, dangerous buildings, and accumulation of refuse through the Lake Oswego Code (LOC 34.08.000—34.11.599) and the County's nuisance provisions. Findings: This policy is intended to ensure that nuisance situations are abated through the enforcement of public nuisance regulations at both the City- and county-level. See the findings for Policy C-4 of the Lake Oswego Comprehensive Plan, in Section A, above. This policy is met. Policy 6: Ensure home occupations do not include business activities which cause adverse impacts on residential neighborhoods such as outside storage, excessive traffic, inappropriate hours of operation, noise, etc., per LOC 48.20.545. Findings: The proposed amendments would regulate potential adverse impacts of home occupations, including excessive on-street parking of commercial vehicles, hours of operation for outdoor activity, and the number of clients or customers permitted at one time. Taken as a whole, the proposed amendments are intended to minimize potential adverse impacts related to traffic and noise from home occupations. This policy is met. Planning Commission Public Hearing Page 10 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 Waluga—Economic Development Policies 10 and 11 Policy 10: Discourage and abate nuisance situations, such as excess noise, unconfined garbage and light spillover, through enforcement of the nuisance provisions of the Lake Oswego Code (LOC 34.08.000-34.11.599). Findings: This policy is intended to ensure that nuisance situations are discouraged and abated through the enforcement of the City's public nuisance regulations. See the findings for Policy C-4 of the Lake Oswego Comprehensive Plan, in Section A, above. This policy is met. Policy 11: Control and license home occupations within the residential zones of the Waluga Neighborhood to ensure they will not increase traffic and noise or disrupt in any other way the livability and quality of life of the residential area. Findings: The proposed amendments will clarify regulations that address traffic and noise impacts from home occupations by placing exact limitations on the number of commercial vehicles that can be parked on the street and the number of clients or customers permitted on site at one time. This policy is met. C. CITY OF LAKE OSWEGO COMMUNITY DEVELOPMENT CODE Notices will be published in the Lake Oswego Review in advance of both the Planning Commission and City Council hearings. (LOC 50.07.003.16.d.iii / LOC 50.007.003.3.d, e). Notice has also been and will be provided at least 10 days in advance to the members of the Committee for Citizen Involvement (Planning Commission members) and to all recognized neighborhood associations for the Planning Commission and City Council hearings (LOC 50.07.003.16.d.iii / LOC 50.007.003.3.d,e). Public comment may be submitted before or during the forthcoming Planning Commission hearing (LOC 50.07.003.16.d.iv(3)) and City Council hearing (LOC 50.07.003.16.d.iv(3), e.ii). All those who submit comment on the proposed amendment receive a notice of decision (LOC 50.07.003.16.e.iv(3)). Notice of the Planning Commission public hearing has been given to DLCD in the manner provided by LOC 50.07.003.16.c. Classification of Amendments as a Legislative Decision The "legislative decision" process per LOC 50.07.003.16.a for adoption of Ordinance 2964 will be followed: A legislative decision is generally a policy decision which is up to the discretion of the City Council, but shall: i. Comply with any applicable state law; ii. Comply with any applicable statewide planning goal or administrative rule adopted pursuant to ORS Chapter 197; and Planning Commission Public Hearing Page 11 of 12 LU 25-0002 November 24,2025 EXHIBIT D-4 iii. In the case of a legislative amendment to this Community Development Code, comply with any applicable provision of the Lake Oswego Comprehensive Plan. The criteria are listed in Applicable Regulations, above, and are addressed in Sections A-B, above. VI. CONCLUSION/RECOMMENDATION Based on the information presented in this report, staff recommends approval of the proposed amendments to the Lake Oswego Community Development Code. EXHIBITS A. Draft Ordinances A-1 Draft Ordinance 2964, 11/14/2025 Attachment 1: Reserved for City Council Findings (not included) Attachment 2: Community Development Code Amendments, draft 10/17/2025 B. Findings, Conclusion and Order [No current exhibits; reserved for hearing use] C. Minutes [No current exhibits; reserved for hearing use] D. Staff Reports D-1 Staff Memo, dated January 16, 2025, for the Planning Commission Work Session on January 27, 2025 D-2 Staff Memo, dated April 7, 2025, for the Planning Commission Work Session on April 14, 2025 D-3 Staff Memo, dated May 30, 2025, for the Planning Commission Work Session on June 9, 2025 E. Graphics/Plans [No current exhibits; reserved for hearing use] F. Written Materials [No current exhibits; reserved for hearing use] G. Letters [No current exhibits; reserved for hearing use] Staff reports and public meeting materials that were prepared for these proposed Community Development Code amendments can be found by visiting the project webpage for LU 25-0002. Use the link below to visit the City's "Project" page. https://www.cLoswego.or.us/all-projects (Under "Search" enter LU 25-0002, then press "Enter") Planning Commission Public Hearing Page 12 of 12 LU 25-0002 November 24,2025 EXHIBIT G-1 From: Robert Ervin To: PC Testimony Cc: McNamee, Michael Subject: LU 25-002 Date: Monday,November 24,2025 11:36:23 AM You don't often get email from bobandmignon@icloud.com. Learn why this is important To: Planning Commission From: Robert Ervin Re: Monte Ferro Land Use for Wine Tasting With the hope of clarifying and with a desire to continue operating as we are currently. 1. We only permit up to 30 people over a four hour window on Saturdays from noon to 5 pm. 2. We only operate from April 15 to October 15 3. We have never have had any parking complaints from neighbors in 8 plus years of operation 4. We have parking for 5 cars on our driveway and off street for several more with turnouts 5. Anytime we have hosted benefits for a charity- one per year max-we have arranged for shuttles to Uplands Elementary after securing parking approval. We do not exceed our weekly street or driveway parking on the days of these events. 6. We host people from all over the world which provides us an opportunity of directing them to local restaurants which is our way of encouraging visitors to try them in support of other local businesses. 7. We do not have live music and are well separated from neighbors on either side and from the street given our 70,000 sq lot. I would be happy to secure affidavits from our neighbors in support of our continued business should that be necessary. I am sure wedding parties, graduation parties, holiday parties, garden parties etc have more attendees than we have. I am fully licensed with the OLCC for sales and tasting on premises. I have a current business license and have had since we opened. As long as we can operate for 45 days and can have up to 30 people at a time there will be no disruption to our business. The 10 person limit is not manageable as we have some overlap in the timing of reservations with can be booked in 15 minute increments. All tastings are by appointment only which enables us to limit attendees. I am unable to attend the hearing this evening but hope this serves to clarify how we operate. Thank you for your consideration and willingness to serve our community as commissioners. Robert Ervin Monte Ferro Winery LU 25-0002 EXHIBIT G-1/PAGE 1 OF 2 EXHIBIT G-1 2240 Prestwick Road Robert Ervin 503-803-9180 PUBLIC RECORDS LAW DISCLOSURE This e-mail is a public record of the City of Lake Oswego and is subject to public disclosure unless exempt from disclosure under Oregon Public Records Law. This email is subject to the State Retention Schedule. LU 25-0002 EXHIBIT G-1/PAGE 2 OF 2 EXHIBIT G-1 LU 25-0002 EXHIBIT G-1/PAGE 3 OF 2